Fact - How to calculate exchange rates

Another thing we run into quite often is confusion on how the calculation of exchange rates works. Typically, when $1 Canadian = $0.75 US, folks think that $1.25 Canadian = $1 US which is simply not the case. Here is how currency exchange calculations work:

	If $1 Canadian = $0.75 US you have to take 1 divided by.75 to find the reverse currency. Specifically, 1/.75 = $1.33 which means when $1 Canadian = $0.75 US, $1 US = $1.33 Canadian.

To make it easier on yourself, you can convert things quite simply into either exchange rate by taking the price of the item and dividing it by the appropriate exchange rate. For example:

	A Hat at the outlet mall in Casa Grande , AZ costs U$11 so: 11/0.75 = C$14.67
	A Toque at West Edmonton Mall costs C$11 so: 11/1.33 = U$8.27