Intermediate Aptitude Currency Conversion Questions
Many when preparing for numerical aptitude tests sooner or later discover the importance of practicing currency conversion questions. Often currency conversions may be difficult to work out especially if you have not done much practice. If you find these questions difficult and don’t know the way around them don’t worry; study our currency conversions practice test guide which will give you solid background to understand and grasp the idea of how to approach these questions with confidence. Below, we will show you how to work out questions pertaining to converting sums of money across two exchange rates.
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How to convert currencies across two exchange rates
To begin with we have put together the below table that presents with exchange rates in similar way you may find in your aptitude test. Read the test question carefully to understand what you are required to do.
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How much is 1 EUR worth in USD?
The above question asks you to work out how much USD could you get for one EUR. For number of test takers the above currency conversion questions could be quite confusing in numerical reasoning test as many would not know whether to multiply euro by sterling, divide sterling by euro or divide euro by US dollars. What do you think which one of these options is correct? None! All you need to do is to perform simple calculation 1 / 1.1752 / 1.5289 = 0.5565; hence the correct answer would be USD 0.5565; that is for 1 EUR you would get 0.5565 USD.
Now you may ask yourself how did we get to this and how do I know what currencies to multiply or divide? The answer is simple. If you don’t know what values to multiply or divide then sketch cross multiplication and division tables as indicated below. Such tables assume simple equations where you will have to solve for one unknown which will be isolated to one side. For example, for the above question you may sketch two equations one to find out how much was one euro worth in pound sterling whereas the other to work out the amount of US dollars you could buy.
- Step 1: 1GBP / 1.1752 EUR = (? GBP) / 1 EUR 1 x 1 / 1.17.52
- Step 2: 1USD / 1.5289 GBP = (? USD) / 0.8509 GBP 0.8509 x 1 / 1.5289
To work out how many GBP equals to 1 EUR follow the first equation. To get the rate between euro and US dollar you will have to find out how many US dollars was 0.8509 GBP worth as 0.8509 GBP equivalents to one euro. Again, diagonally multiply and divide. If you are not clear about this calculation then refer to our previous tutorial on beginner numerical currency conversion questions to find out how to set up and solve for unknown in equation.
Remember, when working out numerical aptitude test currency conversion questions you will always multiply diagonally as long as there will be direct relationship. You would only cross divide in the case of indirect relationship where one value would be proportionally increasing as other value would be decreasing or vice versa.