Money Calculations | Mathematics for GCSE/IGCSE - Year 11 PDF Download

Money Calculations: Overview

• Various mathematical concepts like fractions, percentages, simple and compound interest, and depreciation involve money-related questions.
• When dealing with money calculations, the type of currency used and the magnitude of the numbers determine how you should round your final answers.

Commonly Used Currencies

• International exams feature a wide array of currencies to test your skills.
• The most frequently encountered currencies include:
  • US Dollars ($ or USD)
  • Great British Pounds (£ or GBP)
  • Euros (€ or Euros)
• Apart from these, you might encounter other currencies in various formats.

How should I round my answer in a money calculation?

• Many currencies require rounding to two decimal places.
• Dollars, pounds, and euros should all be rounded to two decimal places.
• Always include both decimal places when rounding, even if the second is zero.
  • When using a calculator, it's crucial to write down both decimal places. For instance, $1.40 might display as 1.4, but should be pronounced as '1 dollar, 40 cents'.
• Consider the context when deciding whether to round to two decimal places.
  • For substantial amounts like the cost of a car, rounding to the nearest dollar, ten dollars, or even one hundred dollars may be more appropriate.
• Some currencies involve large numbers due to exchange rates and are usually rounded to the nearest whole number.
  • For example, $10 could equal 816.38 Indian Rupees, making $100 approximately 8160 rupees due to the fluctuating exchange rates.

What should I do when money calculations involve more than two decimal places?

• In certain situations, monetary figures may be provided with more than two decimal places.
• Examples include exchange rates and the prices of commodities like gas or electricity.
  • For instance, the average cost of one liter of petrol in the UK is approximately £1.579.
• It is advisable to utilize all decimal places provided in intermediate calculations, rounding only the final answer to an appropriate number of decimal places.

What will I be asked to do in money calculations?

• Queries will be structured without explicit terms like 'add,' 'subtract,' or 'multiply,' necessitating thoughtful consideration of the required operations.
• Key terms:
  • 'Total' or 'sum' implies addition.
  • Determining differences or changes in costs involves subtraction.
  • Converting between currencies (using exchange rates) entails multiplication or division.
• Calculating the total cost of an energy bill may necessitate a combination of these operations.