Concept 6 of 7
Foreign Currency: Exchange Rates
Today's big idea
Multiply by the rate to reach rupees, and divide by the rate to leave them.
A bigger rate means the foreign money costs more rupees, not less.
How it works
👀 What's going on?
A game is priced in dollars but your money is in rupees. You cannot compare the two until you swap one into the other. The exchange rate is what does the swapping.
💡 Here's the trick
Look at the table above. Each row says how many rupees one unit of foreign money is worth. To reach rupees you multiply by the rate. To leave rupees you divide by it.
🪄 How to do it
- 1.Read the rate off the table above, in rupees per unit.
- 2.Decide which way you are going, into rupees or out of them.
- 3.Multiply going in, divide coming out, then write the right symbol.
✍️ Try it
A headset costs 35 USD and 1 USD is worth ₹80. Then: how many euros will ₹5,400 buy when 1 EUR is worth ₹90?
Going into rupees you multiply, so 35 times 80 gives ₹2,800. Going out of rupees you divide, so 5,400 shared into 90s gives 60 euros.
⚠️ Watch out
You might be thinking a bigger rate means the foreign money is cheaper. It means the opposite. At ₹90 a euro costs you more rupees than a dollar does at ₹80.
🌟 Why this matters
Families sending money home, holiday shopping and online orders all ride on the rate that day. A small move in the rate shifts a big bill.
Exam tip: Ask whether the answer should be bigger or smaller before you pick multiply or divide.
Watch me solve one
Quanta solves it
“Watch how I think through one of these — then you try.”
THE PROBLEM
“If 1 USD = ₹80, how many RUPEES is 12 USD?”
- 1
Pick the direction
USD → ₹ means multiply by the rate. 💱
- 2
Set up the calculation
12 × 80
- 3
Multiply
12 × 80 = 960.
- 4
Answer ✓
12 USD = ₹960.
Now you try one — same steps, different story 👇
See it in action
⚡ Time to play!
Pick the direction first: into ₹ → multiply by the rate; out of ₹ → divide.
EXCHANGE · ROUND 1 OF 3
1 USD = ₹83. Convert 5 USD into rupees.
Quick check
✅ VERIFICATION
1 GBP = ₹100. How many POUNDS will ₹4,200 buy?
⚡ Finish the activity above first to answer.
Keep going!
Up next: Money Word Problems
Skip the extra info. Always re-state with ₹.