When exchanging from your currency to another country's currency using a foreign rate exchange table, the correct approach involves using the exchange rate to determine how much of the foreign currency you will get in return for a given amount of your currency. Here’s a detailed breakdown of the process:
1. Identify the Amount You Have in Your Currency:
- Let's call this amount [tex]\( A \)[/tex].
2. Find the Exchange Rate:
- The exchange rate is typically provided in the form of how much one unit of your currency is worth in the foreign currency. Let’s call this rate [tex]\( R \)[/tex].
3. Apply the Exchange Rate:
- To convert [tex]\( A \)[/tex] amount of your currency to the foreign currency, you need to perform the following calculation:
- Multiply the amount you have ([tex]\( A \)[/tex]) by the exchange rate ([tex]\( R \)[/tex]).
4. Calculation:
- The formula for converting your currency to the foreign currency is:
[tex]\[
\text{Amount in foreign currency} = A \times R
\][/tex]
### Example
Suppose you have 100 units of your currency, and the exchange rate is 0.85. To find out how much you would receive in the foreign currency:
1. Amount you have ([tex]\( A \)[/tex]): 100
2. Exchange rate ([tex]\( R \)[/tex]): 0.85
Calculate:
[tex]\[
\text{Amount in foreign currency} = 100 \times 0.85 = 85
\][/tex]
Hence, you would receive 85 units of the foreign currency.
### Conclusion
When exchanging from your currency to another country's currency using a foreign rate exchange table, you should:
- Multiply the amount you have by the exchange rate.
Thus, the correct answer is:
1. Multiply the amount you have by the exchange rate
