Solving Currency Conversion Problems

P6 Mathematics - Term II, Topic 7

Lesson 4 of 4

Learning Objectives:

• Solve multi-step word problems involving currency conversion
• Choose the correct operation based on problem context
• Compare values in different currencies
• Apply all currency conversion skills
• Explain problem-solving processes clearly

Quick Review: The Complete Conversion Picture

Lesson 1: Named currencies and read exchange rates
Lesson 2: UGX → Foreign = DIVIDE
Lesson 3: Foreign → UGX = MULTIPLY

Exchange Rates (January 2025):

The Conversion Rules - Review

Converting UGX → Foreign Currency:

• Operation: DIVIDE
• Formula: Foreign = UGX ÷ Rate
• Example: 15,000 Shs ÷ 3,750 = 4 USD

Converting Foreign → UGX:

• Operation: MULTIPLY
• Formula: UGX = Foreign × Rate
• Example: 4 USD × 3,750 = 15,000 Shs

Key Question: What currency are you starting with?

Four-Step Problem-Solving Method

STEP 1 - UNDERSTAND:

• Read carefully
• What do you know?
• What do you need to find?
• What is the exchange rate?

STEP 2 - PLAN:

• Which operation(s) do you need?
• What calculations will you do?

STEP 3 - WORK:

• Carry out the calculations
• Show all working clearly

STEP 4 - ANSWER:

• Check your answer (does it make sense?)
• Write a complete answer sentence

Multi-Step Problem 1: Guided Practice

Problem:
Amina has 45,000 Uganda Shillings. She converts half of it to US Dollars and the other half to British Pounds. How many US Dollars and British Pounds will she get?

Let's break this down together!

Multi-Step Problem 1: Understanding and Planning

STEP 1 - UNDERSTAND:

• Total money: 45,000 Shs
• Half to USD, half to GBP
• Need to find: Amount of USD and amount of GBP
• Rates: 1 USD = 3,750 Shs, 1 GBP = 4,850 Shs

STEP 2 - PLAN:

1. Find half of 45,000 Shs
2. Convert first half to USD (divide)
3. Convert second half to GBP (divide)

Three calculations needed!

Multi-Step Problem 1: Working and Answer

STEP 3 - WORK:

Calculation 1: Find half

• 45,000 ÷ 2 = 22,500 Shs (for each currency)

Calculation 2: Convert to USD

• 22,500 ÷ 3,750 = 6 USD

Calculation 3: Convert to GBP

• 22,500 ÷ 4,850 ≈ 4.6 → about 4-5 GBP

STEP 4 - ANSWER:
Amina will get 6 US Dollars and approximately 4-5 British Pounds

Multi-Step Problem 2: Group Work

Problem:
A trader buys goods from Kenya worth 1,200 Kenyan Shillings. He pays using Uganda Shillings. How much does he pay? Later, he sells the goods and earns 40,000 Uganda Shillings. How much profit did he make in Uganda Shillings?

Work in groups of 4-5:

• Use the four-step method
• Discuss the steps needed
• Show all calculations

You have 4 minutes!

Multi-Step Problem 2: Solution

UNDERSTAND:

• Cost: 1,200 KES (needs conversion)
• Revenue: 40,000 Shs
• Need: Profit in Shs
• Rate: 1 KES = 29 Shs

PLAN:

1. Convert 1,200 KES to UGX (multiply)
2. Calculate profit: Revenue - Cost

WORK:

• Cost: 1,200 × 29 = 34,800 Shs
• Profit: 40,000 - 34,800 = 5,200 Shs

ANSWER: The trader made 5,200 Shs profit

Comparison Problem: Which Option is Better?

Problem:
Alice wants to save money for a trip. She has two options:

• Option 1: Save 10,000 Uganda Shillings
• Option 2: Save 3 US Dollars

Which option gives her more money in Uganda Shillings?
By how much?

Let's solve this together!

Comparison Problem: Solution

UNDERSTAND:

• Option 1: 10,000 Shs (already in UGX)
• Option 2: 3 USD (needs conversion)
• Need to compare in UGX
• Rate: 1 USD = 3,750 Shs

PLAN:

1. Convert Option 2 to UGX (multiply)
2. Compare both amounts
3. Find the difference

WORK:

• Option 2: 3 × 3,750 = 11,250 Shs
• Compare: 11,250 Shs vs 10,000 Shs
• Difference: 11,250 - 10,000 = 1,250 Shs

ANSWER:
Option 2 (3 USD) gives more money. It gives 1,250 Shs more than Option 1.

Decision-Making Problem: Pair Work

Problem:
James has 24,250 Uganda Shillings. He wants to buy a shirt that costs either:

• Option A: 5 British Pounds, OR
• Option B: 6 US Dollars

Can he afford both? If he can only buy one, which should he choose to have more money left over?

Work in pairs - 4 minutes!

Decision-Making Problem: Solution

UNDERSTAND:

• James has: 24,250 Shs
• Option A: 5 GBP, Option B: 6 USD
• Rates: 1 GBP = 4,850 Shs, 1 USD = 3,750 Shs

WORK:

• Option A cost: 5 × 4,850 = 24,250 Shs (exactly his money!)
• Option B cost: 6 × 3,750 = 22,500 Shs
• Money left if A: 24,250 - 24,250 = 0 Shs
• Money left if B: 24,250 - 22,500 = 1,750 Shs

ANSWER:
He can barely afford Option A, and easily afford Option B.
Better choice: Option B (USD shirt) - he'll have 1,750 Shs left!

Tanzania Conversion: Individual Practice

Problem:
Peter travels to Tanzania with 12,000 Uganda Shillings. How many Tanzanian Shillings will he get?
(1 TZS = 1.60 Shs)

Work individually:

• Use the four-step method
• Show all working
• Write a complete answer

You have 2 minutes!

Tanzania Conversion: Solution ✓

UNDERSTAND:

• Peter has: 12,000 UGX
• Wants: TZS
• Rate: 1 TZS = 1.60 Shs

PLAN:

• Convert UGX to TZS
• Divide: 12,000 ÷ 1.60

WORK:

• 12,000 ÷ 1.60 = 7,500

ANSWER:
Peter will get 7,500 Tanzanian Shillings

Note: He gets more TZS because it's a weaker currency!

Real-Life Applications: Why This Matters

Where currency conversion is used:

1. Travel & Tourism - Exchanging money when visiting other countries
2. International Trade - Businesses importing and exporting goods
3. Remittances - Receiving money from relatives abroad
4. Education - Students studying in foreign countries
5. Medical Treatment - Getting healthcare abroad
6. Online Shopping - Buying products from international websites
7. Understanding News - Following economic reports about forex

Topic Summary: What We Learned About Money

Lesson 1: Currencies & Exchange Rates

• Named 5 currencies: UGX, KES, TZS, USD, GBP
• Read exchange rate charts
• Understood what exchange rates mean

Lesson 2: UGX → Foreign (Division)

• Divided to convert to foreign currency
• Solved word problems

Lesson 3: Foreign → UGX (Multiplication)

• Multiplied to convert to Uganda Shillings
• Compared both directions

Lesson 4: Complex Problems (Today!)

• Multi-step problems
• Comparison and decision-making
• Combined all skills

Key Vocabulary Review

• Currency - Money used in a particular country
• Exchange rate - Value of one currency compared to another
• Convert/Conversion - Changing money from one currency to another
• Forex bureau - Place where currencies are exchanged
• Remittance - Money sent from abroad
• Import - Buying goods from another country
• Export - Selling goods to another country
• Multiply - Operation for Foreign → UGX
• Divide - Operation for UGX → Foreign

Problem-Solving Strategy for Currency Problems

Ask yourself these questions:

1. What currency am I starting with?

   • UGX → Divide
   • Foreign → Multiply

2. What am I trying to find?

   • Amount in another currency? Convert!
   • Comparison? Convert both to same currency!
   • Profit/Loss? Convert, then subtract!

3. Do I need multiple steps?

   • Break complex problems into smaller steps
   • Solve one step at a time

4. Does my answer make sense?

   • Check by working backwards
   • Use estimation to verify

Practice: Mixed Problems

Choose the operation(s) needed:

1. Convert 20,000 Shs to 5 USD → ?
2. Tourist has 8 GBP, wants Shs → ?
3. Compare: 15 USD or 12 GBP - which is more? → ?
4. James exchanges 100 KES to Shs, then buys item for 2,500 Shs. How much left? → ?

Don't solve - just identify what operations you'd use!

Answers: Mixed Problems ✓

1. DIVIDE (UGX → Foreign)

   • 20,000 ÷ Rate

2. MULTIPLY (Foreign → UGX)

   • 8 × 4,850

3. MULTIPLY both, then COMPARE

   • 15 × 3,750 and 12 × 4,850, then compare

4. MULTIPLY, then SUBTRACT (multi-step!)

   • First: 100 × 29 = UGX
   • Then: Result - 2,500 = Left over

See the patterns? Understanding the problem is key!

Comprehensive Assessment

Complete in your exercise book (5 minutes):

Problem 1: Convert 18 US Dollars to Uganda Shillings

Problem 2: Convert 17,400 Uganda Shillings to Kenyan Shillings

Problem 3: A woman has 60,000 Uganda Shillings. She converts 30,000 Shs to US Dollars and 30,000 Shs to British Pounds. How many of each will she get?

Problem 4: Which is more valuable: 8 US Dollars or 6 British Pounds? Show your working.

Problem 5: George travels to Kenya with 8,700 Uganda Shillings. He converts them all to Kenyan Shillings. In Kenya, he spends 200 Kenyan Shillings. How many Kenyan Shillings does he have left?

Congratulations!

You've completed Topic 7: Money!

What you can now do:
✓ Name currencies from different countries
✓ Read and understand exchange rates
✓ Convert UGX to foreign currencies
✓ Convert foreign currencies to UGX
✓ Solve multi-step currency problems
✓ Compare values and make decisions
✓ Explain your problem-solving process

These are real-life skills you'll use throughout your life!

Why Currency Conversion Matters

For your future:

• Personal finance - Managing money when you travel
• Business - If you become a trader or entrepreneur
• Education - If you study abroad
• Career - Many jobs involve international dealings
• Understanding the world - Following economic news

You're learning mathematics that empowers you to participate fully in Uganda's economy and the global economy!

Final Tips for Success

Remember:

1. Always identify what currency you're starting with
2. Use the four-step method - it works every time
3. Show your working - don't just write answers
4. Check your answers - multiply back or estimate
5. Practice regularly - these skills improve with use
6. Connect to real life - notice currencies in news, shops, travel

Keep your exchange rate chart and notes - you'll refer to them often!

Looking Beyond: What's Next in Mathematics?

In Secondary School you'll learn:

• Business arithmetic with percentages
• Profit, loss, and discount calculations
• More complex ratio and proportion
• Banking, interest, and savings
• Economic mathematics

The foundation you've built with currency conversion will help you understand all of these advanced topics!

Thank You!

You've worked hard over these four lessons!

Remember:

• Mathematics is not just numbers - it's solving real problems
• Currency conversion connects Uganda to the world
• The skills you learned empower you financially
• Keep practicing and using what you've learned

Prepare for your topic test by reviewing all four lessons!

Thank you for your excellent participation!

Homework

Section A - Basic Conversions:

1. Convert 14 British Pounds to Uganda Shillings
2. Convert 34,500 Uganda Shillings to Kenyan Shillings

Section B - Multi-Step Problems:
3. Ruth has 75,000 Uganda Shillings. She converts half to US Dollars and keeps half in Uganda Shillings. How many US Dollars does she get?
4. A trader buys goods from Tanzania worth 5,000 Tanzanian Shillings. He sells them in Uganda for 10,000 Uganda Shillings. How much profit in Uganda Shillings?

Section C - Comparison & Decision:
5. Josephine wants to buy a book. Shop A sells it for 7,500 Uganda Shillings. Shop B sells it for 2 US Dollars. Which shop offers a better price? By how much?
6. Mark has 40,000 Uganda Shillings. He needs 1,500 Kenyan Shillings for accommodation in Kenya. Does he have enough? How much left in UGX after converting?

Section D - Reflection:
7. Write a paragraph (4-5 sentences): When do we use currency conversion in real life? How do you know whether to multiply or divide? Why is understanding exchange rates important?

Expected time: 30-35 minutes