Convert money between currencies in both directions and compare prices in different countries. It is on Foundation and Higher, aimed at grade 3. Free questions with answers are on this page. Worked examples show each line before you try the questions.
An exchange rate is a conversion multiplier. If £1=1.15 euros, pounds to euros multiply by 1.15; euros to pounds divide by 1.15. Write the unit you want on top of a conversion fraction so the units you do not want cancel.
A two-step holiday question (pounds to euros, then a percentage commission) is still this, with one extra line. Do not round the converted amount until the end if a later percentage will use it. Sense-check: £50 cannot become 0.50 euros unless the rate is broken.
Pounds to the other currency: multiply by the rate. Other currency to pounds: divide. Write the conversion as a sentence ('£1 buys 1.15 euros') so you do not invert it. A two-step holiday question is convert, spend, convert back.
Objectives
£1 = €1.2 means each pound buys 1.2 euros.
To change euros back into pounds, divide by the rate.
Some exchanges charge a fee before or after the conversion.
Key points
Convert pounds into a foreign currency by multiplying by the rate.
Convert a foreign currency back into pounds by dividing by the rate.
Compare the price of the same item in two countries by converting to one currency.
Round money sensibly (usually 2 decimal places).
Worked examples
Example 1
£1 buys 3 dollars. How many dollars do you get for £2?
2 marks
The rate is 3 dollars for every £1, so multiply the pounds by 3.
2 × 3 = 6.
You get 6 dollars.
Answer: 6 dollars
Common slips
Slip: The rate is 3 dollars for every £1, so divide the pounds by 3. Pounds are changed into dollars by multiplying by the rate.
Slip: 2 ÷ 3 = 0.67. Dividing makes the number smaller. The dollar amount should be larger.
Slip: You get 0.67 dollars. A rate above 1 gives more dollars than pounds.
Example 2
£1 buys 3 dollars. How many pounds do you get for 9 dollars?
2 marks
The rate is 3 dollars for every £1, so divide the dollars by 3.
9 ÷ 3 = 3.
You get £3.
Answer: £3
Common slips
Slip: The rate is 3 dollars for every £1, so multiply the dollars by 3. Dollars are changed back into pounds by dividing by the rate.
Slip: 9 × 3 = 27. Multiplying applies the rate a second time.
Slip: You get £27. The pounds should be fewer than the dollars.
Example 3
£1 buys 3 dollars. How many dollars do you get for £4?
3 marks
The rate is 3 dollars for every £1, so multiply the pounds by 3.
4 × 3 = 12.
You get 12 dollars.
Answer: 12 dollars
Common slips
Slip: The rate is 3 dollars for every £1, so divide the pounds by 3. Pounds are changed into dollars by multiplying by the rate.
Slip: 4 ÷ 3 = 1.33. Dividing makes the number smaller. The dollar amount should be larger.
Slip: You get 1.33 dollars. A rate above 1 gives more dollars than pounds.
Questions and answers
GCSE Maths exchange rates questions and answers. Try each one, then open the answer. Easy questions come first.
Question 1 Easy2 marks
£1 buys 3 dollars. How many pounds do you get for 15 dollars?
Show answer
Answer: £5
The rate is 3 dollars for every £1, so divide the dollars by 3.
15 ÷ 3 = 5.
M1 — The rate is 3 dollars for every £1, so divide the dollars by 3.
A1 — Answer £5
Question 2 Easy2 marks
£1 buys 3 dollars. How many dollars do you get for £6?
Show answer
Answer: 18 dollars
The rate is 3 dollars for every £1, so multiply the pounds by 3.
6 × 3 = 18.
M1 — The rate is 3 dollars for every £1, so multiply the pounds by 3.
A1 — Answer 18 dollars
Question 3 Medium2 marks
£1 buys 3 dollars. How many pounds do you get for 27 dollars?
Show answer
Answer: £9
The rate is 3 dollars for every £1, so divide the dollars by 3.
27 ÷ 3 = 9.
M1 — The rate is 3 dollars for every £1, so divide the dollars by 3.
A1 — Answer £9
Question 4 Medium2 marks
£1 buys 3 dollars. How many dollars do you get for £10?
Show answer
Answer: 30 dollars
The rate is 3 dollars for every £1, so multiply the pounds by 3.
10 × 3 = 30.
M1 — The rate is 3 dollars for every £1, so multiply the pounds by 3.
A1 — Answer 30 dollars
Question 5 Hard2 marks
£1 buys 3 dollars. How many pounds do you get for 39 dollars?
Show answer
Answer: £13
The rate is 3 dollars for every £1, so divide the dollars by 3.
39 ÷ 3 = 13.
M1 — The rate is 3 dollars for every £1, so divide the dollars by 3.
A1 — Answer £13
Question 6 Hard2 marks
£1 buys 3 dollars. How many dollars do you get for £14?
Show answer
Answer: 42 dollars
The rate is 3 dollars for every £1, so multiply the pounds by 3.
14 × 3 = 42.
M1 — The rate is 3 dollars for every £1, so multiply the pounds by 3.
A1 — Answer 42 dollars
Question 7 Exam-style2 marks
£1 buys 3 dollars. How many pounds do you get for 51 dollars?
Show answer
Answer: £17
The rate is 3 dollars for every £1, so divide the dollars by 3.
51 ÷ 3 = 17.
You get £17.
M1 — The rate is 3 dollars for every £1, so divide the dollars by 3.
A1 — Answer £17
Common mistakes
Most lost marks on this topic are one slip.
Dividing when converting from pounds into the foreign currency.
Multiply by how many foreign units one pound buys.
Multiplying when converting back.
Divide by the rate to return to pounds.
Applying the fee twice.
Read whether the fee is taken before or after the exchange.
Spot the slip
If £1 = $3, then £4 =
$12
$7
$1.33
Show the slip
$12 Four pounds is four times the rate.
Exam tips
A calculator is useful here. Show the calculation you typed, not only the final line.
If the question says “show that”, the result is given. The marks are for the steps that reach it.
The method is the same on AQA-style and Edexcel-style papers.
Write the operation you are doing ('322÷1.15') before the answer — that is the method mark.
Include the currency in your answer: £280, not 280.
Printable worksheet
The same questions are in a PDF you can print. Answers start on a later page.