Geographic Alliance of Iowa

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Grade Level: Grades 7-10

Time Period: One class period

Inquiry Question:
How does the purchasing power of a U.S. Dollar compare to the purchasing power of Taka in Bangladesh?

Objectives:
The students will convert currency from USD (United States Dollars) to BDT (Bangladesh Taka) and vice versa.
The students will familiarize themselves with common prices in BDT and make comparisons costs of similar items in USD.

Geography Standards:
The physical and human characteristics of places

Themes:
Places and regions

Materials:
Computer with Internet access to currency exchange rates
I’ll Trade You Dollars for Taka worksheet (optional, one for each student)
It’ll Cost Me What? worksheet, one for each student

1. Instructor displays a few items bought in Bangladesh with prices in Taka displayed with the items. Students are welcome to handle the items.
2. Instructor asks, "So, what did these items cost me?" Discussion follows. Instructor introduces lesson, posing the challenge that students discover the cost of each item by learning how to use the exchange rate to convert currencies.
3. Instructor leads interactive classroom discussion of currency conversion between USD and BDT following format on I’ll Trade You Dollars for Taka worksheet. Instructor does not have to distribute worksheet. Instructor leads group discussion, assigns student work in pairs, and assigns individual practice as desired.
4. Instructor will assign It’ll Cost Me What? worksheet for homework.

• Students will be assessed on writing their own currency conversion problems and providing solutions. (See problems in I’ll Trade You Dollars for Taka worksheet.)
• Students will be assessed on identifying patterns in the conversions between BDT and USD. (See problems in I’ll Trade You Dollars for Taka worksheet.)
• Students work independently on practice worksheet, It’ll Cost Me What? and will be assessed on understanding of concept of currency conversion, application f concepts, and ability to draw inferences.

• Conversion Fees—Tell students to find out how much they would have to pay to convert their U.S. dollars to another currency. What do banks charge for the service they provide? What do currency-exchange companies charge? Why do they charge these fees?
• Currency Debate—Should all countries use the same currency? Ask students to list reasons in favor of and reasons against one universal currency.
• The Euro—Research the history of the Euro.

Instructor may consider giving students $1=Tk 70 as a constant exchange rate when working the problems on the worksheets.
Instructor may consider allowing students to use an online currency converter.

http://finance.yahoo.com/currency
http://www.turkishdailynews.com.tr/article.php?enewsid=56038
http://www.lankabusinessonline.com/fullstory.php?newsID=1733646108&no_view=1&SEARCH_TERM=35
http://www.fairwear.net/about/qe7.htm
http://ipsnews.net/news.asp?idnews=34936
http://www.dol.gov/dol/topic/wages/minimumwage.htm
http://www.theindependent-bd.com/details.php?nid=49191
http://devdata.worldbank.org/AAG/bgd_aag.pdf
http://clickbd.com/auction/auction.detail.php?itemNumber=8685

I’ll Trade You Dollars for Taka

1. What are the two current ratios of exchange between U.S. Dollars and Bangladesh Taka? Name the source of your exchange rate.

a.  $1.00 = Tk _______

b.  $_________ ≈ Tk 1 (Round to nearest ten-thousandth.)

Source of exchange rate:  ______________________________________________________________________

 

CONVERTING DOLLARS TO TAKA

2. When you travel to Bangladesh, you will exchange some of your U.S. Dollars for Taka. Using the ratio $1.00 = Tk______ , calculate the following exchanges:

An example: $2.00 is equal to how many Taka? Set up your ratio and solve by cross-multiplication. Note how units of currency will cancel. (Example uses $1.00 = Tk 70.)

$1.00 ₌ $2.00
Tk 70     Tk ?

$1.00 x Tk ? = $2.00 x Tk 70

$1.00 x Tk ? = $140 Tk

Tk ? = $140 Tk
               $1.00

Tk ? = Tk 140 _. ^. _. $2.00 = Tk 140

 

Describe the pattern of conversion:

7.  

 

CONVERTING TAKA TO DOLLARS

 

3. When you leave Bangladesh to return to the United States, you will exchange your Taka into Dollars. Using the ratio $ ≈ Tk 1, calculate the following:

An example: Tk 1400 is equal to how many U.S. Dollars? Set up your ratio and solve by cross-multiplication. Note how units of currency will cancel. (Example uses Tk 1 = $0.014.) (Can you use $1.00 = Tk 70?)

Tk 1  ≈  Tk 1400
$0.014      $ ?

Tk 1 x $ ? ≈ Tk 1400 x $0.014

Tk 1 x $ ? ≈ Tk $ 19.60

$ ? ≈ Tk $ 19.60
                Tk 1

? ≈ $ 19.60 _. ^. _. Tk 1400 ≈ $ 19.60

Write two of your own. Ask a classmate to solve. Check classmate’s answer.

Describe the pattern of conversion:

7.  

 

 

PRACTICE YOUR SKILLS

 

4. If Nancy exchanges $400 today upon her arrival at the Zia Airport in Dhaka, Bangladesh, how many Taka will she receive?

 

 

5. Change the amount of U.S. Dollars Nancy exchanges in question 5 above. Write the new problem and its solution here.

 

 

6. When Khaled arrives in the United States from Bangladesh, he will want to exchange Taka for U.S. Dollars. If Khaled wants $350, how many Taka will he need to exchange?

 

 

7. Write your own problem calling for a conversion from Taka to Dollars and its solution here.

 

 

8. CHALLENGE PROBLEM: If Arti cashed in $550 for Taka in Dhaka, spent Tk 29,275 during his five-day stay in Bangladesh, and converted his extra Taka back to U.S. Dollars at the airport before he left Dhaka, how many U.S. Dollars did he receive if the exchange rate was equal to today’s exchange rate? What exchange rate will you use? (Round your solution to the nearest dollar.)

 

 

It Will Cost Me What?

 

1. In Bangladesh, the current (as of October 2006) minimum wage for garment workers is Tk 1662 per month. What is that in U.S. Dollars (USD)?

 

 

2. In Bangladesh, the current minimum wage for state owned enterprises (SOEs) (i.e. Bangladesh Petroleum Company, Bangladesh Telephone and Telegraph Board, Bangladesh Power Development Board, and Bangladesh Jute Mills Corporation) is Tk 1300. How much is this in USD?

 

 

3. One source reports it takes about $200 a month for a family to meet basic needs in Bangladesh, how much is this in Taka? Can one person working as a garment worker at minimum wage earn enough money to cover basic needs for a family? Can two persons working as garment workers at minimum wage earn enough money to cover basic needs for a family? Explain.

 

 

4. Convert the following monthly wages from BDT to USD:

Best Western Hotel doorman	Tk 2,000	$ ________
Best Western Hotel bell captain	Tk 3,500	$ ________
Assistant librarian at university	Tk 12,000	$ ________
Library worker at university	Tk 6,000	$ ________
University professor	Tk 23,000	$ ________
Government Secretary of Ministry	Tk 23,000	$ ________
Wealthy businessman in Dhaka	Tk 100,000	$ ________

NOTE: The 2006 Gross National Income (GNI) per capita in Bangladesh was $480, whereas the U.S. GNI per capita was $43,560. 40% or more of the population of Bangladesh lives below the national level of poverty.

5. Renting a flat (small apartment or room) in Dhaka can be very expensive, up to Tk 25,000 per month. How much is that in USD? However, one may find a place for as low as Tk 5,000 and can share it with friends. How much is that in USD?

 

6. To furnish an apartment, one may want to purchase used furniture. Convert BDT to USD for each of the following used items and find the total cost in each currency.

 

Two-sitter sofa (love seat)	Tk 3,200	$ ________
Reading table	Tk 1,500	$ ________
Chest of drawers	Tk 6,500	$ ________
Big dining table (slightly broken)	Tk 3,000	$ ________
5 Chairs for dining table, each	Tk 500	$ ________
	x 5 =	$ ________
Camp bed	Tk 3,500	$ ________
TOTAL	Tk. $  ________	$ ________

 

7. A young college student at Dhaka University typically spends Tk 3000 (USD? $ ) to Tk 4000 (USD? $ ) a month on necessary items such as these below. Convert the following costs from BDT to USD:

Pepsi	Tk 12	$ ________
Chai	Tk 3	$ ________
2-lt. bottled water	Tk 20	$ ________
Banana, 1 piece	Tk 3	$ ________
Boiled egg, 1 piece	Tk 5	$ ________
Spring roll (egg roll)	Tk 10	$ ________
Vegetable patty	Tk 10	$ ________
*1 kg. rice	Tk 25	$ ________
1 kg. flour	Tk 32	$ ________

*Note: 1 kilogram = 2.20462262 pounds

1 kg. sugar	Tk 29	$ ________
1 kg. onions	Tk 26	$ ________
1 kg. green chilies	Tk 40	$ ________
1 kg. eggplant	Tk 26	$ ________
1 kg. cucumber	Tk 15	$ ________
1 kg. potatoes	Tk 20	$ ________
1 liter soybean oil	Tk 73	$ ________
Small broiler chicken	Tk 27	$ ________
Broiler chicken (per kg.)	Tk 85	$ ________
Candy bar	Tk 15	$ ________
Newspaper, local	Tk 3	$ ________
Newspaper, national	Tk 12	$ ________
International postcard postage	Tk 14	$ ________
Cotton Salwar Kameez	Tk 500 -	$ ________
	Tk 1500	$ ________
Silk scarf	Tk 260	$ ________
Ready-made pants (minimum cost)	Tk 300	$ ________
Blue jeans (minimum cost)	Tk 500	$ ________
Dress shirt (minimum cost)	Tk 300	$ ________
T-shirts	Tk 100	$ ________
Sandals (rubber/flex sole)	Tk 50	$ ________
Tennis shoes	Tk 300 -	$ ________
	Tk 1000	$ ________
Dress shoes	Tk 500 -	$ ________
	Tk 3000	$ ________
Internet café	Tk 25	$ ________
Haircut	Tk 20	$ ________
Rickshaw ride (1 kilometer)	Tk 10	$ ________
Auto rickshaw ride (2 kilometers)	Tk 50	$ ________
CD of popular music	Tk 60 -	$ ________
	Tk 120	$ ________
Movie ticket	Tk 100	$ ________
Cell phone	Tk 5,000	$ ________
Cell phone calls (per minute)	Tk 2.5	$ ________
Harry Potter book	Tk 140	$ ________
Original artwork—carved folk mask	Tk 2,500	$ ________
Folk instrument, ektara	Tk 7,000	$ ________

 

8. Make a list of twenty common items you purchase with USD in a month. List those items and their cost. Then convert USD to BDT.

1. _________________________________________________________________________

2. _________________________________________________________________________

3. _________________________________________________________________________

4. _________________________________________________________________________

5. _________________________________________________________________________

6. _________________________________________________________________________

7. _________________________________________________________________________

8. _________________________________________________________________________

9. _________________________________________________________________________

10. _________________________________________________________________________

11. _________________________________________________________________________

12. _________________________________________________________________________

13. _________________________________________________________________________

14. _________________________________________________________________________

15. _________________________________________________________________________

16. _________________________________________________________________________

17. _________________________________________________________________________

18. _________________________________________________________________________

19. _________________________________________________________________________

20. _________________________________________________________________________

 

9. Write a 5-sentence summary of what you have learned about the comparative purchasing powers of the U.S. Dollar and the Bangladesh Taka through this math activity.

 

 

I’ll Trade You Dollars for Taka

 

1. What are the two current ratios of exchange between U.S. Dollars and Bangladesh Taka? Name the source of your exchange rate.

a. $1.00 = Tk __70_____ For example, I have used $1.00 = Tk 70.

b. $___0.014______ ≈ Tk 1 (Round to nearest ten-thousandth.)

Source of exchange rate: Answers will vary

 

CONVERTING DOLLARS TO TAKA

2. When you travel to Bangladesh, you will exchange some of your U.S. Dollars for Taka. Using the ratio $1.00 = Tk___70___ , calculate the following exchanges:

An example: $2.00 is equal to how many Taka? Set up your ratio and solve by cross-multiplication. Note how units of currency will cancel. (Example uses $1.00 = Tk 70.)

$1.00 ₌ $2.00
Tk 70     Tk ?

$1.00 x Tk ? = $2.00 x Tk 70

$1.00 x Tk ? = $140 Tk

Tk ? = $140 Tk
            $1.00

Tk ? = Tk 140 _. ^. _. $2.00 = Tk 140

$ 10.00 = Tk__700_____ $100.00 = Tk__7000_____

$1000.00 = Tk__70000_____ $ 5.00 = Tk__350_____

Describe the pattern of conversion:

Answers will vary. Popular answer will be to multiply USD by 70 (or the current exchange rate) to find BDT.

 

CONVERTING TAKA TO DOLLARS

3. When you leave Bangladesh to return to the United States, you will exchange your Taka into Dollars. Using the ratio $ 0.014 ≈ Tk 1, calculate the following: For example, I have used $0.014 ≈ Tk 1. Note: Rounding to a smaller decimal place will lead to more accuracy.

An example: Tk 1400 is equal to how many U.S. Dollars? Set up your ratio and solve by cross-multiplication. Note how units of currency will cancel. (Example uses Tk 1 ≈ $0.014.)

Tk 1 _≈ Tk 1400
$0.014     $ ?

Tk 1 x $ ? ≈ Tk 1400 x $0.014

Tk 1 x $ ? ≈ Tk $ 19.60

$ ? ≈ Tk $ 19.60
                Tk 1

Suggest alternate method: 
Divide Tk 1400 by 70 to get $20.00.

? ≈ $ 19.60 _. ^. _. Tk 1400 ≈ $ 19.60

Answers will vary, dependent upon the exchange rate. For example, using $1.00 = Tk 70, $550 x 70 = Tk 38,500. Tk 38,500 – Tk 29,275 = Tk 9,225. And, Tk 9,225 ÷ 70 ≈ $132.

Tk 1662 ÷ 70 ≈ $23.74

Tk 1300 ÷ 70 ≈ $18.57

*Note: 1 kilogram = 2.20462262 pounds

I’ll Trade You Dollars for Taka
Cost of Artifacts