Who this is for: Cambridge IGCSE Mathematics (0580/0607) students who want Money Conversions — exchange rates, buying and selling currency, and multi-step travel-money problems — to become a reliable source of marks instead of a topic they only half-remember.
What query it owns: how to understand and revise Money Conversions in Cambridge IGCSE Mathematics.
Why this is safe: this page owns the Money Conversions revision-guide angle, while Tutopiya’s Money Conversions subtopic page owns the learning resource and the free Money Conversions quiz owns the practice.

Money Conversions turn up regularly in Cambridge IGCSE Mathematics (0580/0607) as applied Number questions. Exchange-rate tables, buying and selling rates, and commission charges all test whether you can choose multiply or divide correctly. If you master the conversion logic, these become reliable marks. This guide explains exactly what the subtopic covers, how to handle the question types that actually appear, and where to practise each skill.

Key takeaways

• An exchange rate tells you how much of one currency equals another.
• To convert into the second currency, multiply by the rate (when the rate is “1 unit = …”).
• Buying and selling rates differ — banks profit from the spread.
• Always check which direction the conversion goes before calculating.

What are Money Conversions in Cambridge IGCSE Maths?

Money Conversions is the study of exchanging one currency for another using published exchange rates. In Cambridge IGCSE Mathematics it covers converting amounts using given rates, distinguishing buying from selling rates, and solving multi-step problems involving commission or fees. Examiners test whether you multiply or divide by the rate in the correct direction.

You can read the full explanation, worked examples and notes on Tutopiya’s Money Conversions subtopic page before you attempt questions.

The core ideas you must master

These five ideas appear again and again. Learn what each one means and the exam phrasing that signals it.

Idea	What it means	How the exam uses it
Exchange rate	Value of one currency in another	”The exchange rate is £1 = €1.18”
Convert to foreign	Multiply by rate (if rate is per £1)	“Change £250 into euros”
Convert to home	Divide by rate	”Change €590 into pounds”
Buying rate	Bank sells foreign currency (higher)	“Buying rate €1.20 per £1”
Selling rate	Bank buys foreign currency (lower)	“Selling rate €1.15 per £1”

How to convert currency — step by step

The most reliable method is to write what you know, then decide multiply or divide.

1. Read the rate carefully. “£1 = €1.18” means every pound converts to 1.18 euros.
2. Pounds to euros: multiply. £250 × 1.18 = €295.
3. Euros to pounds: divide. €590 ÷ 1.18 = £500.
4. If buying and selling rates differ, use the rate that matches the transaction direction.
5. Subtract commission or fees after the conversion if the question includes them.

Once you have worked through a few, test yourself with the free Money Conversions quiz — it tells you fast whether the method has actually stuck.

Multiply vs divide: which conversion direction applies?

Students lose marks by multiplying when they should divide. Use the rate format to decide.

You have	Rate format	Operation	Example
Home currency → foreign	£1 = €r	Multiply by r	£200 → €200 × 1.18
Foreign → home currency	£1 = €r	Divide by r	€354 → €354 ÷ 1.18
Rate given as “€1 = £0.85”	Per euro	Multiply euros by 0.85	€200 → £170
Commission on total	% of converted amount	Calculate then subtract	2% of €295

Money Conversions in past-paper wording: command words that matter

Most lost marks come from misreading the rate direction or using the wrong buying/selling rate.

Command word / phrase	What the question wants	Typical stem
Change £… into euros	Multiply by exchange rate	”Change £350 into euros at a rate of £1 = €1.16.”
Work out how many pounds	Divide foreign amount by rate	”Work out how many pounds she receives for €460.”
Using the buying rate	Use the higher bank rate	”Using the buying rate, change £500 into dollars.”
Calculate the commission	Find % of converted amount	”The bank charges 1.5% commission. Calculate the commission.”
Work out / Calculate	Numerical answer with method	”Work out the total cost in pounds.”
Show that	Prove a stated conversion	”Show that she receives at least $600.”

Worked exam-style stems (how to answer the wording)

Practising the wording — not just the maths — is what full marks reward.

1. “The exchange rate is £1 = $1.28. Change £450 into dollars.” 450 × 1.28 = $576. Reward: correct multiplication, correct currency.
2. “Mia changes €736 into pounds. The rate is £1 = €0.92. Work out how many pounds she receives.” €736 ÷ 0.92 = £800. Reward: correct division (or equivalent method).
3. “A bank buys euros at £1 = €1.14 and sells at £1 = €1.20. James changes £300 into euros using the buying rate. Work out how many euros he receives.” 300 × 1.20 = €360. Reward: correct rate chosen, correct calculation.

When you can recognise the wording instantly, work the full set on the Number topical past-paper questions and the Money Conversions quiz to lock the method in.

How Money Conversions connects to the rest of Number

Currency problems use percentage skills from Fractions, Decimals and Percentages for commission. Financial context overlaps with Earnings, Simple and Compound Interest. Ratio thinking from Ratios and Proportions helps with rate problems. When you are ready to mix topics, the Cambridge IGCSE Maths resource hub lets you move straight from a weak subtopic into the next.

Common mistakes students make

• Multiplying when the question requires division (or vice versa).
• Using the selling rate when the question asks for the buying rate.
• Misreading the rate as “€1 = £1.18” when it says “£1 = €1.18”.
• Forgetting to subtract commission after the conversion.

When you need more support

If exchange-rate or commission questions keep tripping you up, work through the Earnings, Simple and Compound Interest quiz and the Number topical past-paper questions to pinpoint the exact gap, then get focused help from a Cambridge IGCSE Maths tutor to fix it quickly.

Frequently asked questions

Are Money Conversions hard in Cambridge IGCSE Maths? No — the maths is straightforward multiplication or division. The challenge is reading the exchange rate correctly and choosing the right buying or selling rate.

When do I multiply and when do I divide? If the rate is “£1 = €1.18”, multiply pounds to get euros. To convert euros back to pounds, divide by 1.18.

What is the difference between buying and selling rates? The buying rate is what the bank charges when you buy foreign currency (you get fewer units). The selling rate is what the bank pays when you sell foreign currency back.

How do I revise Money Conversions effectively? Read the subtopic notes, practise conversion questions in both directions by hand, then take the Money Conversions quiz to check your method.

Ready to master Cambridge IGCSE Maths Money Conversions?

Start with the Money Conversions subtopic page, then book a free trial with a Cambridge IGCSE Maths specialist to turn Money Conversions into guaranteed marks.

Ready to Excel in Your Studies?

Get personalised help from Tutopiya's expert tutors. Whether it's IGCSE, IB, A-Levels, or any other curriculum — we match you with the perfect tutor and your first session is free.

Book Your Free Trial