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A gold Australian Kangaroo coin contains 1 troy ounce of gol
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10 May 2020, 13:21
10 May 2020, 13:21
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75% (02:14) correct
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A gold Australian Kangaroo coin contains 1 troy ounce of gold and has a face value of 100 Australian dollars. The intrinsic value of a coin depends solely on the current price of the precious metal within the coin, and can differ from the face value of the coin itself. At a certain time, the price of gold was 1775.30 U.S. dollars per troy ounce and an Australian dollar was equal to 1.016 U.S. dollars. What was the ratio of the intrinsic value to the face value of the Australian Kangaroo coin?
Give your answer to the nearest 0.001.
Kudos for the solution and explanation
Give your answer to the nearest 0.001.
Show: :: OA
17.473
Kudos for the solution and explanation
Re: A gold Australian Kangaroo coin contains 1 troy ounce of gol
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10 May 2020, 14:02
10 May 2020, 14:02
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Post A Detailed Correct Solution For The Above Questions And Get A Kudos.
Question From Our New Project: GRE Quant Challenge Questions Daily - NEW EDITION!
Question From Our New Project: GRE Quant Challenge Questions Daily - NEW EDITION!
Re: A gold Australian Kangaroo coin contains 1 troy ounce of gol
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10 May 2020, 22:10
10 May 2020, 22:10
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Price of 100 Australian dollar in USD is 100*1.016= 101.6.
It is given that value of coin depends on the precious metal inside the coin and not on the face value.
Thus, gold price in USD is 1775.3 and hence, the ration is 1775.3 / 101.6 = 17.473.
It is given that value of coin depends on the precious metal inside the coin and not on the face value.
Thus, gold price in USD is 1775.3 and hence, the ration is 1775.3 / 101.6 = 17.473.
