@mathematics.proofs 4 October 2020 more from that month

Financial Mathematics: Currency Conversions

*Image by* *tookapic* *from Pixabay* https://pixabay.com/users/tookapic-1386459/?utm_source=link-attribution&utm_medium=referral&utm_campaign=image&utm_content=932401 In this article I will be demonstrating ****how to get the formula**** which **converts one type of currency into another and vice versa**. It's a pretty simple task, so let me get started... Let's say today 0.77 pounds is equal to 1 dollar. How would we be able to get 1 pound in terms of dollars? Well, what we could do is name the currencies and also the value 0.77: **Currency 1 = C_1 = 1 Dollar** **Currency 2 = C_2 = 1 Pound** **Real Number = r = 0.77** So, I said that 0.77 pounds is equal to 1 dollar. Because of the definitions above, it can be written like this: **C_1 = r*C_2** If we want to make the **opposite conversion**, we do a simple manipulation of the formula above: **C_2 = (1/r)*C_1** In **non-mathematical terms**, that would mean that: **1 Pound = (1/0.77)*(1 Dollar)** Therefore: **1 Pound = 1.30 Dollars (to 2 decimal places)** See, I told you it was pretty simple. You can use the formulas listed here to convert any two currencies back and forth. Just name **C_1** and **C_2** and the multiplier **(r)**. *Article written by Tiago Hands:* *https://www.instagram.com/tiago_hands* *Mathematics Proofs (Instagram):* *https://www.instagram.com/mathematics.proofs* *Mathematics (Read.Cash):* *https://read.cash/@mathematics.proofs* *Lead Image: By* *moerschy* *from Pixabay* https://pixabay.com/users/moerschy-127417/?utm_source=link-attribution&utm_medium=referral&utm_campaign=image&utm_content=1005477