Commission - Intermediate and Higher tier - Foreign money and exchange rates - WJEC - GCSE Maths Numeracy (WJEC) Revision

Commission - Intermediate and Higher tier

Some companies charge commission for exchanging your currency. This may be:

The amount you’re exchanging may influence which company you choose.

Anwen is going on holiday and wants to exchange £500 into Australian dollars.

Bank A will give her an exchange rate of £1 = 2.08 AUD and charge a flat fee of £5 per transaction.

Bank B are offering an exchange rate of £1 = 2.02 AUD with no additional charges.

Which bank should Anwen use to get the most Australian dollars for £500?

Glynn needs €240 for his holiday to Italy.

SmartSavers charge a handling fee of £4.

CurrencyConverters add 1.5% onto the amount of pounds you are changing.

Both companies are offering an exchange rate of £1 = €1.25.

Calculate how much €240 will cost Glynn at both companies and suggest which company he should use and why.