Money Calculations
Money Calculations
Money calculations
What currencies can be used?
Many different currencies are used
The most commonly used currencies are
US Dollars ($ or USD)
Pounds (£ or GBP)
Euros (€ or Euros)
It is possible to see other currencies used, with or without their symbols
What might I be asked to do in money calculations?
Read exam questions carefully to identify keywords
Total or sum will mean to add up
Difference or increase/decrease in costs will involve subtracting
Changing from one currency to another (exchange rates) will involve multiplying or dividing
Some questions may involve a combination of these
E.g., Working out the total cost of an energy bill
Questions that involve money may also involve other topics in the course
E.g., Fractions, percentages, simple and compound interest etc.
How should I round values in a money calculation?
Many currencies will be rounded to two decimal places
Dollars, pounds and euro should all be used to two decimal places
Always write down both decimal places, even if the second is zero
This is particularly important when using a calculator
1.4 pounds on a calculator should be written as £1.40
For a question involving large numbers such as the cost of a car
Rounding to the nearest pound, 10 pounds or 100 pound may be more appropriate
Use the information in the question to make a judgement
Some currencies have large numbers due to exchange rates
These are usually rounded to the nearest whole number
E.g., £10 is 1246.59 rupees making £100 the same as 12465.9 rupees
Rounding the exchange rate to £100 is 12470 rupees would be appropriate
What should I do when money calculations involve more than two decimal places?
In some contexts money facts may be given to more than two decimal places
E.g. One litre of petrol in the UK costs an average price of £1.579
Use all of the decimal places given in your working
Round (to two decimal places or whatever is appropriate) for your final answer only