Calculators might look too simple on the hindsight, but if you come closer, you will see that you do require a little bit of technical knowledge to operate them properly, especially when the calculator in question is a scientific calculator of all. This makes it easier to stress more on important math concepts rather than stressing more on basic arithmetical calculations.
Calculators might look too simple on the hindsight, but if you come closer, you will see that you do require a little bit of technical knowledge to operate them properly, especially when the calculator in question is a scientific calculator of all..... Read More
Calculating exchange rates may seem simple on the surface, but it can be confusing to those that don't remember mathematics from school. While converting $100 to foreign currency when traveling isn't a big deal, converting currencies when analyzing a foreign stock's financial statements can mean big differences for international investors trying to make investment decisions.6 Let's look at an example of how to calculate exchange rates. Suppose that the EUR/USD exchange rate is 1.20 and you'd like to convert $100 U.S. dollars into Euros. To accomplish this, simply divide the $100 by 1.20 and the result is the number of euros that will be received: 83.33 in that case. Converting euros to U.S. dollars involves reversing that process by multiplying the number of Euros by 1.20 to get the number of U.S. dollars. An easy way to remember this is to multiple across left-to-right and divide across right-to-left, with the ending currency being the desired output of the calculation. In the example above, we divided across right-to-left to determine how many Euros we could purchase with U.S. dollars and then multiplied across left-to-right to see how many U.S. dollars we'd receive from euros. Travelers may only be interested in calculating to a relatively low degree of accuracy, such as cents, but currency traders that are highly leveraged pay attention to each pip. A small fluctuation in a currency can have a big impact for a trader that has borrowed $1,000 for each $1.00 committed to a trade or an international investor determining the impact of a $0.0001 difference on $1 billion in revenue.
Calculating exchange rates may seem simple on the surface, but it can be confusing to those that don't remember mathematics from school. While converting $100 to foreign currency when traveling isn't a big deal, converting currencies when analyzing a.... Read More