Currency
Currency is a key number topic at GCSE Maths. This Foundation and Higher worksheet gives you exam-style questions on converting between currencies, with a full mark scheme so you can check every method mark. Suitable for AQA, Edexcel and OCR. Download the free PDF and answers below. Check which way the conversion goes before multiplying or dividing by the rate.
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These worksheets and mark schemes are original, written for Virtus Academy and checked against the current AQA, Edexcel and OCR specifications. Every worksheet comes with a full mark scheme.
Topic overview
Currency conversion uses an exchange rate, which tells you how many units of one currency you get for one unit of another. If the rate is \(1.15\) euros to the pound, then \(£1\) buys \(€1.15\).
Converting in the direction of the rate means multiplying. Converting back means dividing. Deciding which is needed is the whole skill, and a quick sense-check settles it: if the new currency is worth less per unit, you should end up with more of it.
Exchange rates are usually given to two decimal places, but the answer should be rounded sensibly for the currency, normally to two decimal places for money.
Revision notes
Using the rate
If the rate is given as euros per pound, multiply pounds by the rate to get euros, and divide euros by the rate to get pounds.
With a rate of \(1.15\): \(£200\) becomes \(200 \times 1.15 = €230\), and \(€92\) becomes \(92 \div 1.15 = £80\).
Choosing multiply or divide
Check which currency the rate is quoted per. The rate \(1\) pound \(= 1.15\) euros means multiplying converts pounds to euros.
Sense-check afterwards: since a euro is worth less than a pound here, the number of euros should be larger than the number of pounds.
Comparing prices in two currencies
Convert both prices to the same currency, then compare.
If a jacket costs \(£60\) in the UK and \(€75\) abroad, at a rate of \(1.15\) the second is \(75 \div 1.15 = £65.22\), so the UK price is cheaper.
Key points
- An exchange rate gives units of one currency per unit of another.
- Multiply to convert in the direction of the rate.
- Divide to convert back.
- Check which currency the rate is quoted per.
- Sense-check whether the answer should be larger or smaller.
- Round money answers to two decimal places.
Worked examples
Example 1
The rate is \(£1 = €1.18\). Convert \(£250\) to euros.
Working
Example 2
The rate is \(£1 = \$1.25\). Convert \(\$400\) to pounds.
Working
Example 3
A camera costs \(£180\) in the UK and \(€225\) in France. At \(£1 = €1.20\), which is cheaper?
Working
Common mistakes
Multiplying when you should divide.
Check which currency the rate is quoted per, then sense-check the size of the answer.
Comparing prices without converting.
€225 and £180 cannot be compared directly. Convert to one currency first.
Rounding the exchange rate before calculating.
Use the full rate given and round only the final answer.
Omitting the currency symbol.
The answer must make clear which currency it is in.
Exam tips
- Write down the rate and which currency it is per before calculating.
- Sense-check whether the answer should be bigger or smaller.
- Convert both prices to one currency before comparing.
- Include the correct currency symbol in the answer.
Key terms
- Exchange rate
- The value of one currency expressed in another.
- Convert
- To change an amount from one currency to another.
- Commission
- A fee sometimes charged for exchanging currency.
- Sterling
- The UK currency, the pound.
Related topics
Written and reviewed against the current AQA, Edexcel and OCR specifications. Spotted an error? Let us know.