Currency conversion:

Countries have many different names for their currencies.

Because national economies also differ greatly, a unit of
currency in one country almost always has a different value
to a unit of currency in another country.

Example 1:
In the year 2000, Elke was planning to go on holiday
from Germany to Greece. She changed 2000 Euros
(EUR) to Greek drachma (GRD) at a rate of
1EUR=340.75 GRD

a. Calculate how many drachma she received.

By cross multiplication:

Elke became ill. She had to cancel her holiday. She

sold the drachma back to the bank at the rate of
1EUR=347.82 GRD
b.
i. How many Euros did she receive?

By cross multiplication:

Banks or shops that make transactions want to

gain some money out of it. They can do this in two
 ways: either charge a fee called commission for
the service, usually at a percentage rate of the
total, or they charge different rates for the selling
or the buying of a currency, chosen to be in their
favor.
ii. How much did the bank gain from the two
transactions?

Originally, Elke had 2000 EUR and she ended up

having 1959.35 EUR.
So basically, the bank made 2000-1959.35=40.65
EUR

iii. Calculate Elke’s loss as a percentage of her

original 2000 EUR.

Example 2:
Jim is travelling on business from Korea to
Japan. The bank sells Japanese Yen (JPY) at a
rate of
1Korean Won (KRW) = 0.1219 JPY
A commission is charged at a rate of 2% in
KRW.
Jim pays 1 million KRW. How much did he
receive in JPY?

So Jim is left with 1000000-20000=980000 KRW

to exchange.

And so
x= 980000*0.1219=119462 JPY