Your grandparents just returned home from a once-in-a-lifetime trip around the world and have offered to give you some of the currency they had left over from the many countries they visited. You can only pick one currency to receive as they are planning to give your siblings the other currencies. You have the following choices:
501.5 Chinese yuan
3288.3 Indian rupees
509.10 Mexican pesos
Of course, you want to choose the one that is worth the most U.S. dollars, but which one would that be? How would you calculate which currency amount is worth the most U.S. dollars?
In order to determine which currency amount is worth the most U.S. dollars, you will first need to know the exchange rate. Currency exchange rates vary daily. For the purpose of this lesson, use the following exchange rates:
1 USD (United States dollar) = 6.5 CNY (Chinese yuan)
1 USD (United States dollar) = 54.8 INR (Indian rupee)
1 USD (United States dollar) = 12.75 MXN (Mexican peso)
Given those exchange rates, can you determine which currency you would want to choose?
In order to determine which one is worth the most U.S. dollars, you will need to convert each to U.S. dollars. You can use dimensional analysis, or factor label method, to convert the currencies.
Let’s start with the Chinese yuan.