Question

How would you mathematically approach converting a currency when the dollar is 1.15 times another currency?

Answer 1

To convert currency when the dollar is 1.15 times another currency, divide the amount of dollars you have by 1.15 to get the equivalent amount in the foreign currency, or multiply the amount of the foreign currency you have by 1.15 to convert it to dollars.

Step-by-step explanation:

To convert currency when the dollar is 1.15 times another currency, you need to determine the amount of foreign currency equivalent to 1 dollar and then multiply the amount of dollars you want to convert by this exchange rate. To illustrate the process, let's use two examples:

1. If 1 dollar is equivalent to 1.15 euros, and you have $100, then you would calculate the conversion as follows: $100 × (1 / 1.15 euros/dollar) = 86.96 euros.
2. Conversely, if you have 100 euros and want dollars, you would calculate it by multiplying the euros by the rate: 100 euros × 1.15 (dollars/euro) = $115.

This calculation is essential for international transactions, whether you are a tourist exchanging money for a trip or a business converting revenue from currency sales abroad to the home currency.