Taking the rate by the numbers
When trying to convert dollars to a foreign currency, most clients ask, "
how can I convert my dollars to the foreign currency?'
The answer isn't always simple, not because it is complex, but simply because it's, math, numbers, and foreign currency all mixed into one equation.
If you have $100 dollars and you're looking for Australian dollars with a rate of 1.2039 per dollar, how do you do the math?
Because the rate is expressed in "per-dollar" format, the equation will read, USD x Rate = Foreign.
So, let's take 100 (USD) x 1.2039 (Rate) = 120.39 (Foreign).
Take the same $100 US dollars, but now you've been given the rate of .8306 per Aussi dollar. Now what? If you were to multiply this, you would get 83.06 Australian for your $100. What you need to do is divide, not multiply.
Now, we'll take $100 (USD) divided by (/) .8306 (rate) = 120.39 (Foreign).
Did you see that coming or did was your mind blown?
Like stated before, it's not complicated, it's just math, numbers and foreign currency.
Every time you hear "per-dollar", you will multiply and every time you hear "per (foreign currency)", you will divide.
Note Worthy:
When you have a currency that is valued higher than the US dollar for example Euro and British pounds, you will need to do the inverse of what you just learned. Have fun with that one.
Now you're well prepaired for any foreign trip.