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This video explains how to convert currency using a currency exchange rate. John has 15,000 US dollars that he wants to convert to Euros, with an exchange rate of 1 US dollar to 0.9 Euros. To calculate how many Euros John will receive, set up a fraction with the given amount of US dollars in the numerator and the exchange rate in the denominator. Make sure the units cancel out correctly by placing US dollars on the top of one fraction and on the bottom of the other. This ensures the final answer is in Euros.