Miscellaneous Exam-Style Questions.
Problems adapted from questions set for previous exams. The questions selected here all contain the text 'Exchange'.
The Griffiths family from London are going on holiday to Thailand.
They have a total of £1200 which they want to change into Thai baht but can't decide whether to change all of the money at once or in two instalments of £600.
They see this deal in a Currency Exchange Bureau.
How much extra money do they get by exchanging all of their money in one transaction?
Helena is going for a holiday to France. She changes 900 Singapore Dollars (SGD) into Euros (EUR) with no commission charged. The exchange rate between EUR and SGD is:
1 EUR = 1.49 SGD
(a) Calculate the value of 900 SGD in EUR to the nearest whole number.
At the end of Helena’s holiday in France she has 155 EUR. She converts this back to SGD at a bank, which does not charge commission, and receives 227.85 SGD.
(b) Find the exchange rate of this second transaction.
(c) Determine, when changing EUR back to SGD, whether the exchange rate found in part (b) is better value for Helena than the exchange rate in part (a). Justify your answer.
All answers to this question should be given to the nearest whole currency unit.
Katie and Keith each have 9000 USD to invest.
Katie invests her 9000 USD in a bank account that pays a nominal annual interest rate of 3.8% compounded yearly. Keith invests his 9000 USD in an account that offers a fixed interest of 410 USD each year.
(a) Find the amount of money that Keith will have in the bank after 4 years.
(b) Find the amount of money that Katie will have in the bank at the end of 9 years.
(c) Find the number of complete years it will take for Katie’s investment to first exceed 12000 USD.
(d) Find the number of complete years it will take for Katie’s investment to exceed Keith’s investment.
Keith moves from the USA to Spain. He transfers 3500 USD into a Spanish bank which has an exchange rate of 1 USD = 0.89 euros. The bank charges 1.5% commission.
(e) Calculate the amount of money Keith will invest in the Spanish bank after commission.
Keith returns to the USA for a short holiday. He converts 900 euros at a bank in Rutherford, NJ and receives 1018.44 USD. The bank advertises an exchange rate of 1 euro = 1.15 USD.
(f) Calculate the percentage commission Keith is charged by the bank.