# Numerical Reasoning Test Practice - Currency Conversion

Currency conversions can sometimes seem daunting, but if you know how to approach them they become a lot easier.

Imagine you are told that the exchange rate for pounds to euros was £1 to €1.175 and you are asked to calculate how many pounds you could exchange for one euro.

Saying £1 to €1.175 euros is the same as saying £1 equals €1.175.

When applying mathematics to one side of a ratio the same must be done to the other. SO, if we wanted to find how many pounds we could exchange for one euro we need to do a calculation that changes this ratio to one that looks like this:

If you divide any number by itself you will always be left with 1, which is what we are trying to turn 1.175 into.

So we need to divide 1.175 by itself, and if we are dividing one side of the ratio by 1.175 we must do the same to the other. This leaves us with 0.851 pounds.

So, the answer is 0.851 pounds to 1 dollar.

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