Question

What is the equivalence of $$950$$ US dollars in British pound sterling if $1$ US dollar= $$0.62$$ British pound sterling?

Answer 1

Hint: For solving these types of problems, we require the knowledge of currency conversions and ratio proportions. For these types of conversions, the conversion ratio remains the same which is $$0.62$$ here. We assume the equivalent pound to be x. The ratio remaining constant, we get $\begin{array}{rl}& {\displaystyle \frac{BP}{USD}}={\displaystyle \frac{x}{950}}=0.62\\ & x=950\times 0.62=589BP\end{array}$

Complete step-by-step solution:
For solving these types of problems, we require the knowledge of currency conversions and ratio proportions. Ratio proportions are generally employed for currency conversions. The United States dollar, USD is the official currency of the United states and its territories. On the other hand, the Pound Sterling also sometimes called the pound or sterling, is the official currency of the United Kingdom. It is the oldest currency in continuous use.
In currency conversions, the conversion factor remains constant. This means that the relation between various currencies remains constant. As per the given problem, $1$ US dollar= $$0.62$$ British pound sterling. The conversion factor over here is $$0.62$$ . This means that the ratio between one US dollar and one British pound is constant which is $$0.62$$ . Let the equivalent of $$950$$ US dollars be x pounds. The ratio remaining constant, we get
$\begin{array}{rl}& {\displaystyle \frac{BP}{USD}}={\displaystyle \frac{x}{950}}=0.62\\ & \Rightarrow x=950\times 0.62=589BP\end{array}$
Thus, we can conclude that $$950$$ US dollars is equivalent to $589$ British pound sterling.

Note: The backbone of this calculation is the conversion ratio, so we should write it correctly every time. Inverting it at any time can lead to a completely different answer. The proportionality can also be shown as ${\displaystyle \frac{950}{1}}={\displaystyle \frac{x}{0.62}}$ . The answer still remains the same.