Homework Help is Here – Start Your Trial Now!
Business
Economics
Owing to the rising cost of copper, in 1982 the U.S. Mint changed the composition of pennies from 95% copper (and 5% zinc) to 2.5% copper (and 97.5% zinc) to save money. Your favorite aunt has a collection of 4,500 pennies minted before 1982, and she intends on gifting the collection to you. a. What is the collection's value based on metal content alone? Copper sells for $3.25 per pound and zinc for $1.25 per pound. It takes approximately 130 pre-1982 pennies to add up to one pound of total weight. b. If it cost the U.S. Mint $0.017 to produce a penny in 2007, one can say that it is time to eliminate pennies and round off all financial transactions to the nearest 5 cents (nickel). As a matter of interest, it cost the government almost 10 cents to produce a nickel in 2007. What is likely to happen in this situation?

Owing to the rising cost of copper, in 1982 the U.S. Mint changed the composition of pennies from 95% copper (and 5% zinc) to 2.5% copper (and 97.5% zinc) to save money. Your favorite aunt has a collection of 4,500 pennies minted before 1982, and she intends on gifting the collection to you. a. What is the collection's value based on metal content alone? Copper sells for $3.25 per pound and zinc for $1.25 per pound. It takes approximately 130 pre-1982 pennies to add up to one pound of total weight. b. If it cost the U.S. Mint $0.017 to produce a penny in 2007, one can say that it is time to eliminate pennies and round off all financial transactions to the nearest 5 cents (nickel). As a matter of interest, it cost the government almost 10 cents to produce a nickel in 2007. What is likely to happen in this situation?

ENGR.ECONOMIC ANALYSIS
ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN:9780190931919
Author:NEWNAN
Publisher:NEWNAN
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
See similar textbooks
icon
Related questions
Question
**Text:** Owing to the rising cost of copper, in 1982 the U.S. Mint changed the composition of pennies from 95% copper (and 5% zinc) to 2.5% copper (and 97.5% zinc) to save money. Your favorite aunt has a collection of 4,500 pennies minted before 1982, and she intends on gifting the collection to you. **a.** What is the collection's value based on metal content alone? Copper sells for $3.25 per pound and zinc for $1.25 per pound. It takes approximately 130 pre-1982 pennies to add up to one pound of total weight. **b.** If it cost the U.S. Mint $0.017 to produce a penny in 2007, one can say that it is time to eliminate pennies and round off all financial transactions to the nearest 5 cents (nickel). As a matter of interest, it cost the government almost 10 cents to produce a nickel in 2007. What is likely to happen in this situation? **Explanation:** This text discusses the change in penny composition by the U.S. Mint due to copper's cost, and how this impacts the value of older pennies. It also raises questions about the cost-effectiveness of producing pennies and nickels, considering potential changes in financial transactions.
Transcribed Image Text:**Text:** Owing to the rising cost of copper, in 1982 the U.S. Mint changed the composition of pennies from 95% copper (and 5% zinc) to 2.5% copper (and 97.5% zinc) to save money. Your favorite aunt has a collection of 4,500 pennies minted before 1982, and she intends on gifting the collection to you. **a.** What is the collection's value based on metal content alone? Copper sells for $3.25 per pound and zinc for $1.25 per pound. It takes approximately 130 pre-1982 pennies to add up to one pound of total weight. **b.** If it cost the U.S. Mint $0.017 to produce a penny in 2007, one can say that it is time to eliminate pennies and round off all financial transactions to the nearest 5 cents (nickel). As a matter of interest, it cost the government almost 10 cents to produce a nickel in 2007. What is likely to happen in this situation? **Explanation:** This text discusses the change in penny composition by the U.S. Mint due to copper's cost, and how this impacts the value of older pennies. It also raises questions about the cost-effectiveness of producing pennies and nickels, considering potential changes in financial transactions.
Expert Solution
trending now

Trending now

This is a popular solution!

steps

Step by step

Solved in 3 steps

SEE SOLUTIONCheck out a sample Q&A here
Blurred answer
Similar questions
  • SEE MORE QUESTIONS
Recommended textbooks for you
ENGR.ECONOMIC ANALYSIS
ENGR.ECONOMIC ANALYSIS
Economics
ISBN:
9780190931919
Author:
NEWNAN
Publisher:
Oxford University Press
Principles of Economics (12th Edition)
Principles of Economics (12th Edition)
Economics
ISBN:
9780134078779
Author:
Karl E. Case, Ray C. Fair, Sharon E. Oster
Publisher:
PEARSON
Engineering Economy (17th Edition)
Engineering Economy (17th Edition)
Economics
ISBN:
9780134870069
Author:
William G. Sullivan, Elin M. Wicks, C. Patrick Koelling
Publisher:
PEARSON
Principles of Economics (MindTap Course List)
Principles of Economics (MindTap Course List)
Economics
ISBN:
9781305585126
Author:
N. Gregory Mankiw
Publisher:
Cengage Learning
Managerial Economics: A Problem Solving Approach
Managerial Economics: A Problem Solving Approach
Economics
ISBN:
9781337106665
Author:
Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor
Publisher:
Cengage Learning
Managerial Economics & Business Strategy (Mcgraw-…
Managerial Economics & Business Strategy (Mcgraw-…
Economics
ISBN:
9781259290619
Author:
Michael Baye, Jeff Prince
Publisher:
McGraw-Hill Education
SEE MORE TEXTBOOKS