Financial Mathematics – Exchange Rate

As rate is the comparison of two quantities of a different kind, we can use the principles of rate to determine exchange rate. Exchange rate is when you exchange one country’s money with another country’s money. E.g. If we have an exchange rate of R13,95 for $1, we will exchange R10 000 for approximately $716.85. Also, be on the lookout for our videos on ratio and rate (which will be published pretty soon), if you do not understand how to determine rate.