I have a list of monthly payments in Excel that looks like this:
01/18/2005 340.00 07/25/2005 270.00 05/10/2006 500.00 03/30/2007 730.00 10/01/2007 120.00
If the payment amounts in the second column to the right are in Euros, and I want to add a column to the right of it that shows the amounts in USD, what is the best method to do the conversion from the first currency into the second?
Options I can imagine:
- Use the historical EUR/USD rate for each date in the list
- Use the average historical EUR/USD rate for each year indicated in the list
Which of these approaches is "standard"?
Are there other ways to do it?
What are the advantages and disadvantages of each approach?