Currency conversion questions, worked in full

One question of this type, worked in full

Try the question before you read on. The steps take the fastest route that still shows the reasoning, and the last one is the answer the drill marks.

An invoice for 2,400 pounds is converted at 1.25 euros to the pound, and the bank deducts a fee of 4 percent of the converted amount. How many euros arrive?

1. Convert before you charge anything: 2,400 × 1.25 = 3,000 euros.
2. The fee is a percentage of that converted total, not of the invoice: 3,000 × 0.04 = 120 euros.
3. A fee is deducted, so take it off: 3,000 - 120 = 2,880 euros.

Answer: 2,880 euros. Testonome practice pace: 70 seconds for a question like this.

Four ways this question type goes wrong

Each question offers these alongside the right answer, and the review names which one you took.

• Divided by the rate

  Dividing by the rate instead of multiplying by it, which converts in the opposite direction.

• Fee added, not deducted

  Adding the fee to the converted amount instead of deducting it, so the charge moves the total the wrong way.

• Fee taken as money

  Taking the fee off as an amount of money rather than as a percentage of one.

• Fee never applied

  Converting correctly and stopping one step early, with the fee never applied.

What the review gives you after you submit

You get the working for every question, the answer you chose beside the right one, and the reason the option you picked is wrong. Nothing is sent anywhere while you work.

Other numerical skills you can drill

• Weighted average
• Compound growth