Global Computer Shopping: Finding the Best Deal for Kate

This problem involves multiple currency conversions to determine the cheapest place for Kate to buy a computer. It emphasizes the importance of understanding exchange rates when making international purchases.

The Problem:

In Australia, a computer costs $785 (Australian dollars) including worldwide shipping. In China, the same computer costs 3400 Chinese Yuan including worldwide shipping. Kate lives in the UK and needs to buy a new computer. Using the exchange rates below, advise her on which country to buy it from. You must show full workings.

• 1 Australian dollar = 0.7 US dollars
• 1 US dollar = 0.9 Euro
• 1 Chinese Yuan = 20 Japanese Yen
• 133 Japanese Yen = 1 Euro
• 1 Japanese Yen = 0.5 Indian Rupee

The Solution:

We need to convert both prices to a common currency, preferably Euros, since we have a direct conversion from Japanese Yen to Euros.

1. Convert the Australian Price to Euros:

• Australian price: $785 AUD
• Convert to USD: $785 AUD * 0.7 USD/AUD = $549.50 USD
• Convert to Euros: $549.50 USD * 0.9 EUR/USD = 494.55 EUR

2. Convert the Chinese Price to Euros:

• Chinese price: 3400 Chinese Yuan
• Convert to Japanese Yen: 3400 CNY * 20 JPY/CNY = 68000 JPY
• Convert to Euros: 68000 JPY / 133 JPY/EUR ≈ 511.28 EUR

3. Compare the Prices in Euros:

• Australia: 494.55 EUR
• China: 511.28 EUR

Conclusion:

Based on these calculations, the computer is cheaper in Australia (494.55 EUR) than in China (511.28 EUR). Therefore, Kate should buy the computer from Australia.

Important Considerations:

• Exchange Rate Fluctuations: Exchange rates can change rapidly, so these calculations are only accurate at the time the rates are used.
• Bank Fees/Transaction Costs: We haven’t included potential bank fees or transaction costs for international purchases, which could slightly alter the final cost.

Why This Matters:

This problem highlights the importance of understanding exchange rates when making international purchases. It demonstrates how to convert currencies and compare prices to make informed financial decisions.

If you’re preparing for your GCSEs and want to strengthen your understanding of ratio, proportion, and currency conversions, a skilled GCSE Maths tutor can provide the guidance and practice you need to succeed! With the right support, you can build your confidence and achieve your best results.