91Ó°ÊÓ

APPLICATION If you're planning to travel to another country, you will need to learn about its monetary system. This table gives some exchange rates that tell how many of each monetary unit are equivalent to one U.S. dollar. \begin{tabular}{|l|c|c|} \hline Country & Monetary unit & Exchange rates units per American dollar) \\ \hline Brazil & real & \(2.686\) \\ \hline Thailand & baht & \(38.600\) \\ \hline Italy & euro & \(0.772\) \\ \hline Japan & yen & \(104.160\) \\ \hline Mexico & peso & \(11.297\) \\ \hline India & rupee & \(43.650\) \\ \hline United Kingdom & pound & \(0.536\) \\ \hline \end{tabular} (Federal Reserve Bank of New York for January 25, 2005) a. Make a list of ten items and the price of each item in U.S. dollars. Enter these prices into list \(\mathrm{Ll}\) on your calculator. b. Choose one of the countries in the table and convert the U.S. dollar amounts in your list to that country's monetary unit. Use list L 2 to calculate these new values from list \(\mathrm{Ll}\). c. Using list L.3, convert the values in list L. back to the values in list d. Describe how you would convert euros to pesos.

Step by step solution

01

Create a List of Items

Think of ten items you would want to purchase, and note down their prices in U.S. dollars. For example, you might choose items like a book ($15), a coffee ($3), a sandwich ($7), and so on.

02

Enter Prices in List L1

Using your calculator, enter the prices of these ten items into list L1. This list will be used to store your initial prices in U.S. dollars.

03

Choose a Country for Conversion

Select one country from the provided table for which you'd like to convert the U.S. dollar prices into their currency. For instance, you may choose Brazil, which has an exchange rate of 2.686 reais per 1 dollar.

04

Convert USD to Chosen Currency Using List L2

Multiply each item price from list L1 by the exchange rate of the country you've chosen. Enter these converted prices into list L2. For example, if using Brazil, multiply each item price in list L1 by 2.686 to get the price in reais.

05

Reconvert Back to USD Using List L3

To verify conversion reversibility, take the prices in list L2 and divide each by the exchange rate used in Step 4. Store these results in list L3. If done correctly, this gives you back your original prices in USD.

06

Convert Euros to Pesos

To convert euros to pesos, divide the desired amount in euros by the euro-to-dollar exchange rate (0.772), converting it to USD. Multiply the result by the dollar-to-peso exchange rate (11.297) to convert USD to pesos.

Unlock Step-by-Step Solutions & Ace Your Exams!

• Full Textbook Solutions

  Get detailed explanations and key concepts

• Unlimited Al creation

  Al flashcards, explanations, exams and more...

• Ads-free access

  To over 500 millions flashcards

• Money-back guarantee

  We refund you if you fail your exam.

Over 30 million students worldwide already upgrade their learning with 91Ó°ÊÓ!

Key Concepts

These are the key concepts you need to understand to accurately answer the question.

Monetary Systems

Monetary systems form the backbone of international trade and travel. Each country has its own currency, such as the Brazilian real or the Japanese yen, and these currencies are used within their respective countries. These systems also allow countries to make trade transactions globally.

Money in each system is often backed by government guarantees, and its value can fluctuate based on economic factors like inflation or political stability. By understanding different monetary systems, we can learn how to effectively navigate global transactions.

For example, when you receive euros in Italy, each euro's value is different compared to a US dollar. These differences create the basis for currency conversion and exchange rates, which are crucial for anyone traveling abroad or engaging in international business.

Calculator Usage in Mathematics

Calculators are powerful tools in mathematics, especially for complex tasks such as currency conversion. When converting currency, a calculator helps to quickly and accurately multiply and divide as required by the exchange rate.

Entering data into lists on a calculator is particularly useful, as it allows you to handle multiple conversions simultaneously. By inputting US dollar prices into a list, you can efficiently perform bulk currency conversions.

For example, you enter a list of item prices in USD into your calculator's List function. Afterward, by applying the appropriate conversion rate in another list, you save time and reduce the potential for errors.

Currency Conversion

Currency conversion is the method of changing one currency into another. When traveling or purchasing from foreign retailers, knowing the exchange rate is crucial. The exchange rate tells you how much of the foreign currency you get for one unit of your domestic currency.

For instance, if converting dollars to reais, one dollar equals 2.686 reais. Knowing this rate allows you to calculate costs while traveling in Brazil accurately.

• Multiply the USD by the exchange rate to convert to the foreign currency.
• Reverse the process by dividing the foreign currency by the same exchange rate to convert back to USD.

Understanding these conversions helps in budgeting and financial planning during international transactions.

Mathematical Problem Solving

When it comes to mathematical problem solving, especially in currency conversion across different markets, critical thinking is essential. This involves strategies like step-by-step breakdowns, ensuring accuracy and understanding through each stage of the process.

Consider the example of converting euros to pesos. You first convert euros to USD, and then from USD to pesos through successive calculations. This requires division by the euro-to-dollar rate and subsequent multiplication by the dollar-to-peso rate.

Such problems can seem complex initially, but breaking them down into smaller parts simplifies the process. Each step involves straightforward mathematical operations, but requires logical sequencing to arrive at the correct result.

By mastering this approach, students build confidence in tackling various problems not only related to currencies but also across different disciplines in mathematics.