What’s In Your Wallet? – Currency Exchange

1.What is a currency exchange?

2.What is an exchange rate?

3.Choose any country in the world, except Mexico or Canada. Use at least 2 different resources to find the current exchange rate for the country you chose. List your resources.

Country chosen:

Resource 1:

Exchange rate:

Resource 2: _

Exchange rate:

4. Interpret the meaning of the exchange rate(s) in terms of the U.S. dollar.

5.Give the name of money in your selected country.

Use the phone book to find at least 3 places to exchange currency locally.

Location 1:

Location 2: _

Location 3:

What’s In Your Wallet? – Marcos family

Upon returning from a two-week vacation from Mexico City in the 2006, the Marcos family visited a bank to exchange (convert) their unspent Mexican pesos for U.S. dollars. They had 178 pesos they wished to exchange for U.S. dollars.

The graph shows the average number of Mexican pesos (MXN) for one
U.S. Dollar (USD) during the year 2006.

Exchange rates for Mexican pesos to 1 U.S. dollar, 2006

(MXN is an abbreviation for Mexican pesos)

Months / Exchange Rate
January / 10.625 MXN
February / 10.4315 MXN
March / 10.462 MXN
April / 10.856 MXN
May / 11.0525 MXN
June / 11.282 MXN
July / 11.154 MXN
August / 11.022 MXN
September / 10.894 MXN
October / 10.971 MXN
November / 10.7505 MXN
December / 10.986 MXN

1.What was the exchange rate in May 2006?

2.Estimate the average exchange rate for changing Mexican pesos to U.S. dollars for all of
2006?

Show or explain how you estimated using words, numbers and/or diagrams.

3.Approximately how many U.S. dollars should the Marcos family expect to receive in
exchange for their 178 pesos?

Show your work using words, numbers and/or diagrams.

4.Determine which month would have resulted in the most U.S. dollars in exchange for the pesos. Explain how you determined the month.

5.Using data for the month determined in #4,determine the amount of U.S. dollarsthe Marcos family would receive for their 178 pesos.

Show your work using words, numbers and/or diagrams.

What’s In Your Wallet? – Spending pesos

6.During their two-week trip to Mexico, the Marcos family purchased several souvenirs. John, the youngest son, purchased a t-shirt for 85 pesos. Cindy, the oldest daughter, purchased a leather belt for 150 pesos. Mrs. Marcos brought back a piñata for which she spent 90 pesos.

The Marcos family made this conversion graph to help them while shopping.

Use the graph to determine how much the souvenirs cost in U.S. dollars.

a.t-shirt ______

b. leather Belt

c. piñata

d. Describe how you determined the cost for the piñata.

7.What was the approximate exchange rate at the time of the Marcos family vacation?

Show how you determined the exchange rate using words, numbers and/or diagrams.

8.To help convert pesos into dollars quickly, the Marcos family also created a table showing the relationship between the U.S. dollar and the peso.

Using the estimated exchange rate found in # 7, find the missing values in the table.

U.S. dollar and Mexican peso conversion chart

Value in U.S. dollars / $0.50 / $1 / $2 / $7
Value in Mexican pesos / $1 / $35 / $100

9.Describe the process (in words) the Marcos family would use to determine the number of U.S. dollars they are spending for an item that is priced in pesos.

10.Write the equation that the Marcos family would use to determine the number of U.S. dollars they are spending for an item that is priced in pesos. Define the variables.

11.Mr. Marcos was trying to decide whether or not to purchase an iron sculpture for
1,250 pesos. He was concerned about how much it cost in U.S. dollars.

What would be the cost in U.S. dollars?

Show your work using words, numbers and/or diagrams.

12.On any given day the exchange rate can fluctuate (change). Suppose the exchange rate had been 1 U.S. dollar = 9 pesos.
a) How would this have affected the graph in #6?

_
_

b) What would a slope of “one” mean? Explain.

c) Could there be a negative slope? Explain why or why not.

13What would Mr. Marcos have paid in U.S. dollars for the iron sculpture at an exchange
rate of 1 U.S. dollar = 9 pesos?

Show your work using words, numbers, and/or diagrams.

14.Is the relationship between the number of pesos and the number of U.S. dollars
proportional (same or constant ratio)?
Explain.

15. Another way for the Marcos family to exchange dollars for pesos is to use their debit card or credit card at an Automated Teller Machine (ATM) to get cash. When using a debit card, the bank charges a flat fee of $2.50 each time and gives an exchange rate of 12.50 pesos for each U.S. dollar. The credit card company charges a fee of 2% of the amount of cash withdrawn (in U.S. dollars) and gives an exchange rate of 12 Mexican pesos for each U.S. dollar.

Is it a better deal for Mrs. Marcos to use her debit card or he credit card to withdraw
$100.00 in US dollars?

Show your work using words, numbers and/or diagrams

WORLD EXCHANGE RATES

Alfred won a radio contest where the prize was a trip around the world, visiting the countries of Canada, Great Britain, Germany, and Mexico. In addition to having all travel expenses paid, Alfred was given $500 (USD) to spend in each country. However, Alfred was soon faced with the challenge that the prices in each country were given in the currency of that particular country—not U.S. dollars. Afraid that he would spend more than his$500.00 (USD), Alfred went online and found the exchange rates shown in the table.

Currency Exchange Rates

USD
U.S.
Dollar ( $ ) / EUR
Euro ( € ) / GBP
United Kingdom
Pound ( £ ) / JPY
Japan
Yen (¥ ) / CAD
Canadian
Dollar ($ ) / MXN
Mexican
Peso ( $ )
1 U.S. dollar Buys / 1.00000 / 0.973710 / 0.623950 / 120.396 / 1.55069 / 10.1910
Inverse / 1.00000 / 1.02700 / 1.60269 / 0.00830782 / 0.64487 / 0.098126

16.Using the information from the table above, estimate the value of 500 U.S. dollars in each country that Alfred will visit.

Show your work using words, numbers and/or diagrams.

Canada (Canadian dollar):

Great Britain (British pound):

Germany (Euro):

Mexico (Mexican peso):

17.Worried that an estimate might not be sufficient (accurate enough), Alfred made the following table for a more accurate exchange calculation. Complete the table to show the exchange amounts.

USD / $1 / $2 / $3 / $4 / $5 / $10 / $n
CAD
GBP
EUR
MXN

Show your work in an organized manner using words, numbers and/or diagrams.

18.After further investigation online, Alfred saw the exchange rates displayed as a graph. He+ thought this representation would be helpful on his trip; so he printed the graphs, only to find some of the labels did not print.
Determine which line represents each country’s exchange rate and label each line appropriately.

Foreign Exchange Rates and the U.S. dollar

Explain how you determined which country matched which line.

19.Why do all the lines meet at the origin?

WHAT’S IN YOUR WALLET

MULTIPLE CHOICE PRACTICE PROBLEMS

20. Artists have traditionally studied human proportions to draw human figures realistically (accurately). When drawing a female figure like the one in this picture, the realistic ratio of the distance from the hip to the toe (x) to the height of the woman (y) is 0.613. An artist is creating a 9-inch high drawing of a woman.

Which should be the distance in inches from the hip to the toe?

A. 0.07

B. 3.5

C. 5.5

D. 14.7

Show your work using words, numbers and/or diagrams.

21.Jerry placed 32 pounds of ice in a tub. Every 15 minutes, half of the remaining ice melted, as shown in this table.

Which value represents how many pounds of ice were left after one hour?

A.16

B.4

C.2

D.

Show your work using words, numbers and/or diagrams.

22.The table shows a relationship between x and y.

x / y
1 / 1
3 / -3
6 / -9
8 / -13

Which equation represents the relationship between x and y shown in the table?

A.

B.

C.

D.

23.Olivero is choosing between two brands of batteries for his graphing calculator. A package of three Brand-M batteries costs $5.50, and a package of three Brand-P batteries costs $3.85.

Which percent of the cost of Brand-M batteries did Olivero save by buying a package of Brand-P batteries?

A.17

B.30

C.43

D.70

Show your work using words, numbers and/or diagrams.

24Each Saturday bill and Carol rent a canoe. The chart shows the amount of time and the price paid for each rental.

Canoe Rental Prices

TIME
in hours (h) / PRICE
(P)
1 / $10
/ $16
4 / $22
5 / $26
8 / $38

Which equation will help bill and Carol determine the price of their next canoe rental?

A. + 0

B.

C.

D.

25.It takes 20 minutes per pound to cook a turkey. Mona’s turkey weighs 7 ½ pounds. Peter’s turkey weighs 9 pounds.

Which represents how much longer it will take to cook Peter’s turkey than Mona’s?

A.20 minutes

B.30 minutes

C.40 minutes

D.90 minutes

Show your work using word, numbers, and/or diagrams.

Student: Ch.6 “What’s in Your Wallet?” 4/28/08Page 1 of 13