Question

Convert the currency using the given exchange rate. Convert 200 euros to United States dollars. (1 euro is 1.066 dollar.)

Short answer

When you execute the multiplication, you'll get the amount in dollars: 213.2 USD. Thus, 200 Euros are equal to 213.2 United States Dollars.

Step-by-step solution

Identify Given Values

We are given that 1 Euro equals 1.066 United States Dollars. We are also given that we want to convert 200 euros. Thus, we have two values: the number of euros (200 Euros) and the conversion rate (1.066 USD/Euro).

Convert Euro to United States Dollars

Now we multiply the number of Euros by the exchange rate to find the number in dollars. The conversion formula is: \[ \text{{Amount in Dollars}} = \text{{Amount in Euros}} \times \text{{Exchange Rate}} \] So applying this we get: \[ \text{{Amount in Dollars}} = 200 \times 1.066 \].

Calculate the Result

Multiply 200 by 1.066 to find the result.

Key concepts

Exchange Rate Calculations

Understanding how exchange rate calculations work is an essential skill in today’s global economy. An exchange rate tells us how much one currency is worth in terms of another. When converting money, such as from euros to United States dollars, you need to multiply the amount you have in the original currency (euros) by the exchange rate.
For example, if you're traveling and want to know how much your euros will be worth in dollars, you need to look up the current exchange rate. In the case of our exercise, 1 euro equals to 1.066 dollars. This rate can fluctuate daily due to market changes. To convert 200 euros using our given rate, we simply multiply the amount in euros (200) by the exchange rate (1.066). This type of calculation is fundamental in finance, travel, and international trade. Preparing for these real-world scenarios in an educational setting helps students gain confidence and proficiency with basic financial math.

Multiplication in Algebra

Multiplication is one of the building blocks of algebra. In the context of currency conversion, it comes into play when we scale an amount by an exchange rate. The formula \[\text{{Amount in Dollars}} = \text{{Amount in Euros}} \times \text{{Exchange Rate}}\]is actually an algebraic expression.
Breaking it down, the amount in euros (the value being converted) is considered as our 'variable' and the exchange rate is our 'coefficient'. When we process the multiplication—such as 200 euros times an exchange rate of 1.066 dollars per euro—we are using algebra to scale the euro amount to the equivalent amount in dollars. Through multiplication, we're expanding our mathematical understanding beyond simple arithmetic into more complex applications, making algebra a practical tool in solving real-world problems.

Real-World Math Application

The real-world application of mathematical concepts is what truly brings the subject to life. Currency conversion is one such practical application of math. Not only does it help students understand the value of international currencies and their relations but also focuses on utilizing mathematical operations to find tangible results. In doing so, students learn how to apply abstract concepts like exchange rates and multiplication to everyday situations—like exchanging money for a trip abroad or calculating expenses in different currencies for international business transactions.
Real-world problems often require the conversion of one unit to another, and currency is a great example of this. By learning how to properly perform these conversions with real numbers and current exchange rates, students gain valuable skills they can use in their personal and professional lives. Furthermore, understanding how these calculations affect global economics, business, and travel fosters a broader grasp of the world, its markets, and the influence of global economics.