Year 9 Session 4 Online Gaming - How to work out exchange rates

[00:00:00]online gaming converting digital currency into pounds when we play online games lots of us will end up spending money in the currency of that game we'll often buy a package of points at the start and then purchase a bunch of different items as we play the game it's important for us to understand the actual value of the items purchased with the in-game currency to do this we need to be able to convert the in-game currency like FIFA points Robux Fe bucks or mine coins into pounds so we can see how much we're actually spending in this video we're going to learn how by working through an example together say we have an exchange rate of pounds to FIFA points which is £10 to 2,000 FIFA points Charlie buys a range of in-game purchases as shown below how much has Charlie spent in real life looking at the information about the FIFA points that we've been given we can work out the total amount of FIFA points that Charlie spent we do this by adding up 150 points spent on player cards and the 200 points spent on Jersey kits and the 100 points spent on Badges and lastly the 350 points spent on Fitness cards this gives us a grand total of 800 given that we know that Charlie has spent 800 FIFA points points let's work out how much 800 FIFA points is worth in pounds to do this we set up the exchange rate pounds to FIFA points as a ratio so we can make some comparisons and do some calculations looking at the question we know that £10 gets you 2,000 FIFA points so first we find out how much one is worth in FIFA points as once we know this we can work out how much any amount of FIFA points is worth in real life to get from £10 to1 we remember that any number divided by itself equals 1 so in this case we can see that £10 / 10 equals 1 because we're looking at ratios we recall the Golden Rule whatever we do to one side we need to do to the other so now we do 2,000 points ided 10 which gives us 20000 FIFA points now that we know that £1 will buy 200 FIFA points we need to work out how much 800 FIFA points costs in pounds going back to our ratios we can put in our 800 fever points and look at how to convert the 800 points into pounds to do this we first need to find out how many times bigger 800 is than 200 because multiplying and dividing working opposites we calculate 800 / 200 which equal 4 so we can see that 800 it's four times bigger than 200 so we're multiplying the side by four and again with ratios what we do to one side we do to the other so we then multiply our 1 by four which gives us £4 meaning the overall Charlie has spent £4 on in-game purchases so as a brief recap we first worked out the total amount of FIFA points that Charlie spent on in-game purchases we then worked out how much one pound is worth in FIFA points and we finally use this to calculate the total amount of pounds spent the method we've just used will be super helpful as it applies to all exchange rates like when working out conversions between dollar to pound or Euros to pound it's also important to highlight that in-game currency is often bought in bundles and it may be that you don't spend all of the amount in one session however once you've paid for the package and the purchase has been made your money is locked in which is why it's worth being able to track the value of what you're spending as you go lastly remember that spending when online gaming can easily add up and escalate over time so if you are making purchases it's important to check with whoever is paying the bill and to always keep track of your money [Music]