What is Conversion of Numbers & Why it is Necessary in Finance?

In our daily life, the conversion of numbers plays a vital role. Every mainland has its system of representing a number. The techniques of conversion are very important, not only for students but also for bankers, businessmen, and finance professionals to make international deals.

If you grab all the basics of conversion of numbers, it is quite simple. These conversions also play an important role in the stock exchange. In this article, we will discuss the conversion of number systems from one to another.

What is Conversion?

In mathematics, conversion is defined as “the operation of finding a converse in logic or mathematics”. The conversion of numbers is very essential in making deals, investments, etc. with the other states of the world. The well-known figures are million, billion, trillion, lakhs, crores, and thousands.

Importance of Numbers of Conversion in Finance!

In finance, the conversion of numbers is too much important. Finance is a universal term used for money, credit, debit, saving, lending, budgeting and investing. Generally,finance is an authorized company of any state who works to manage the expenses and money.

For example, if the company of any country or an individual from any country, or ministry buys or sells the shares or is involved in association with any other country the payment method will be different for each of them.

Such as if all of the above mentioned are dealing with the United Kingdom then the money transactions will be in million or billion otherwise in crore & lakhs.

Some Important Number Conversions!

1. Million to Lakhs

This conversion is very important to deal with Asian & European countries. The formula is given below:

Million to lakhs= term in million × 10

Example: Convert 2.5 Million into lakhs.

Solution:

Step 1: Write the formula

Million to lakhs = terms in million × 10

Step 2: Enter the values and perform the calculation.

Million to lakhs = 2.5 × 10

Million to lakhs = 25

So, 2.5 Million is equal to 25 lakhs.

2. Million to Billion

Million to billion is a frequently used number system. The general formula is as follows:

Million to billion= numbers in million × 0.001

Example: Convert 1789 million into billions.

Solution:

Step 1: Write the formula

Million tobillion = numbers in million × 0.001

Step 2: Enter the values and perform the calculation.

Million tobillion=1789 × 0.001

Million tobillion=1.789

So, 1789 Million is equal to 1.789 billion.

3. Million to Crore

This conversion is normally used by a person who belongs to Europe and wants to invest in the sub-continent. The formula for this conversion is given below:

Million to crore= number in million × 0.1

Example:Convert 1985 Million into crore.

Solution:

Step 1: Write the formula

Million to crore = number in million × 0.1

Step 2: Enter the values and perform the calculation.

Million tocrore =1985 × 0.1

Million tocrore = 198.5

So, 1985 Million is equal to 198.5 crores.

4. Billion to Crore

Billion to crore conversion is widely used in Asia and the Middle East, the businessmen use it for converting their incoming and outgoing payments. The general formula of billion to crore conversion is as follows:

Billion to crore= numbers in billion × 100

Example: Convert 47.84 billion into crore.

Solution:

Step 1: Write the formula

Billion to crore = numbers in billion × 100

Step 2: Enter the values and perform the calculation.

Billion to crore =47.84 × 100

Billion to crore =4784

So, 47.84 billion is equal to 4784 crores.

The above example can also be solved by using a billion to crore converter to perform the conversions within seconds.

Steps:

1. Enter the value
2. Select the unit from the list
3. Press Enter or click on calculate to get the result within seconds.

5. Billion to Million

Billion to million conversion isfrequently used in daily routine calculations of national and multi-national companies. The formula is:

Billion to million= numbers in billion * 1000

Example:

Convert 91.532 billion intomillions.

Solution:

Step 1: Write the formula

Billion to million = numbers in billion * 1000

Step 2: Enter the values and perform the calculation.

Billion to million=91.532 × 1000

Billion to million= 91532

So, 91.532 billion is equal to 91532 million.

Summary

In this article, we have discussed the famous and most commonly used conversions. The conversions that we discussed above are frequently used in the business field. You have gone through the basics of converting a number to another. We also discussed the importance of number conversion in finance. Hope this article will help you in your daily life conversions.