Question

1. Rowan lives in New Zealand. He is coming to Wales on holiday. The currency used in New Zealand is the New Zealand dollar ($). 1 New Zealand dollar = 100 cents. The conversion rate at the exchange shop is $1 = £0.53. The exchange shop only has £10 and £20 notes. Rowan only has $550 saved. He wants to exchange as close to $550 as possible. He asks for as few notes as possible. Calculate: how many of each British note Rowan gets, how much he pays for his currency, correct to the nearest cent. You must show all your working.​

Answer 1

To exchange $550 into British pounds, we need to use the conversion rate of $1 = £0.53.

First, let's calculate how much money Rowan will get in British pounds.

550 dollars * £0.53/1 dollar = £291.50

Now, let's determine how many notes Rowan will receive.

The exchange shop only has £10 and £20 notes. Let's start with the £20 notes.

£291.50 / £20 = 14.575

Since we can't have a fraction of a note, Rowan will receive 14 £20 notes.

Now, let's calculate how much Rowan will pay for his currency exchange.

14 * £20 = £280

Rowan will pay £280 for his currency exchange.

However, we still have £11.50 remaining to exchange. Let's see how many £10 notes we need.

£11.50 / £10 = 1.15

Since we can't have a fraction of a note, Rowan will receive 1 £10 note.

Now, let's recalculate how much Rowan will pay for his currency exchange.

14 * £20 + 1 * £10 = £300

Rowan will pay £300 for his currency exchange to get as close to $550 as possible.