Exchange Rates and Currency Exchange

Strictly using the mid-rates from the cross-rate table presented earlier, if you wanted to convert $C$1,500$ into $MXN$$ for your spring break vacation in Cancun, Mexico, how many Mexican pesos would you have?

Solution

Take Canadian currency and convert it into the desired Mexican currency.

What You Already Know

Step 1:

The amount and the exchange rate are known:

Current Currency = $$1,500$

Exchange Rate = 1$2.1445$

How You Will Get There

Step 2:

No buy or sell rates are involved. Skip this step.

Step 3:

Apply Formula 7.4.

Perform

Step 3:

Desired Currency = $12.1445 × $1,500 = $18,216.75$

You have $$18,216.75$ Mexican pesos available for your spring break vacation.