Question

Suppose Zeeland pegs its currency, the zee, at 1 zee = 36 grains of gold while...

Suppose Zeeland pegs its currency, the zee, at 1 zee = 36 grains of gold while Aeeland pegs its currency, the aeellar, at 1 aeellar = 10 grains of gold.

Instructions: Round your answers to 1 decimal place.

a. What would the exchange rate be between the zee and the aeellar?

b. How many aeellars could you get for 7 zees?

c. In terms of gold, would you rather have 14.5 zees or 53 aeellars?

53 aeellars

14.5 zees

Both are equally valuable

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Homework Answers

Answer #1

1 zee = 36 grains of gold and 1 aeellar = 10 grains of gold.

a) Exchange Rate between the zee and aeellar is 36/10 = 3.6.

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b) 7 Zees = 7*36 = 252 grains of gold.

1 aeellar = 10 grains of gold.

So, 252/10 = 25.2 is the required aeellars that could be got with 7 zees.

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c) 14.5 zees = 14.5 * 36 = 522 grains of gold.

53 aeellars = 53 * 10 = 530 grains of gold.

So 53 aeellars are more valuable and i would like to have it only.

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