Here is my question. If I have the following exchange rates:
- 1 Euro = 1.13 USD
- 1 British Pound = 1.56 USD
Is it possible to calculate the value of Euros to British Pounds given that I only have exchange information for these currencies against USD (US Dollars)? In other words, using only the information above is it possible to calculate the following:
- 1 Euro = Equals how many pounds?
- 1 British Pound = Equals how many Euros?
I happen to have the results below since I can get these values on the internet but I do not have the conversion formula which is what I seek for this question.
Answer:
- 1 British Pound = 1.38 Euros
- 1 Euro = 0.72 British Pounds
If anyone knows how to convert other currencies using only one currency as the base for calculation (in this case USD), I would highly appreciate your feedback.
If $1\text{EUR}=1{,}13\text{USD}$, then $\frac{1}{1{,}13}\text{EUR}=1\text{USD}$ Same goes for $1\text{GBP}=1{,}56\text{USD}$ so $\frac{1}{1{,}56}\text{GBP}=1\text{USD}$.
Now $\frac{1}{1{,}13}\text{EUR}=\frac{1}{1{,}56}\text{GBP}$ which e.g. solved for $\text{EUR}$ gives $1\text{EUR}=\frac{1{,}13}{1{,}56}\text{GBP}\approx 0{,}72\text{GBP}$.