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Financial Maths

Financial Maths. Note 1: Currency. When two currencies are compared, the value of one currency is given in the units of the other. Example 1: $NZ1 = $US0.84 Find: $NZ300 in $US $US450 in $NZ. $NZ300 = 300 x 0.84 = $US252. $US450 = 450 ÷ 0.84 = $NZ535.71. Example 2 : .

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Financial Maths

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  1. Financial Maths

  2. Note 1: Currency When two currencies are compared, the value of one currency is given in the units of the other. Example 1: $NZ1 = $US0.84 Find: $NZ300 in $US $US450 in $NZ $NZ300 = 300 x 0.84 = $US252 $US450 = 450 ÷ 0.84 = $NZ535.71

  3. Example 2: If you have £3000 how much will you get in Japanese Yen. £3000 = 3000 x 151.63 = ¥454890 If you have ¥800 how much will you get in US dollars ¥800 = 800 x 0.01005 = $US8.04

  4. Currency is bought and sold by a currency broker. The currency broker will buy our dollar from us for £0.66 and will sell us a dollar for £0.67. Examples: After returning from holiday we have $US700 to convert into £. We have saved £2500 to take on holiday to Australia. How many Australian dollars will we get. $US700 = 700 x 0.66 = £462 £2500 = 2500 ÷ 0.68 = $AUS3676.47

  5. Brokers charge commission in the currency that they buy and sell. Example: A British broker charges commission of 1.5% for transactions. One British pound is equal to $US1.52 How much will a customer receive if they convert £1200 to US$. Commission = 1200 x 0.015 = £18 Currency to convert = £1200 – £18 = £1182 £1182 = 1182 x 1.52 = $US1796.64

  6. Page 457 Exercise 15A.1 – A.3

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