Assume £1 (pounds sterling)gold coin in the United Kingdom contains 113.0016 grains of pure gold,while the $1 gold coin in the US contains 23.22 grains.If the cost of shipping £1 from London to New York was 3 cents,the gold export point of the UK pound is _____,and the gold import point is ________.
A)$113.16; $113.22
B)$4.90; $4.84
C)$19.16; $19.22
D)cannot be determined from information given

Question

Quizplus · Accepted Answer

To find the gold export point, we need to calculate the value of 113.0016 grains of gold in US dollars:

(113.0016/23.22) * $1 = $4.8992

Adding the cost of shipping ($0.03) to this value, we get:

$4.9292

Therefore, the gold export point for the UK pound is $4.90.

To find the gold import point, we need to calculate the value of $1 in UK pounds:

(23.22/113.0016) * £1 = £0.2053

Multiplying this value by the gold export point in pounds (£1), we get:

£0.2053 * £1 = £0.2053

Therefore, the gold import point for the US dollar is approximately £0.21, or £0.2053 rounded to the nearest penny.

Assume £1 (Pounds Sterling)gold Coin in the United Kingdom Contains