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?

Economics: Private and Public Choice (MindTap Course List)

16th Edition

ISBN:9781305506725

Author:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson

Publisher:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson

Chapter13: Money And The Banking System

Section: Chapter Questions

Problem 3CQ

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