Question

If the price of gold at the morning fixing in London was 5310 per lb, what would a kilogram of gold have cost in £ (pounds)? (Assume an exchange rate of 1.00 = £0.545)

1) £1310
2) £3510
3) £6370
4) £10400
5) £17100

Answer 1

To solve the problem, we convert the price of gold from per pound to per kilogram and then apply the given exchange rate to convert the price from dollars to pounds. The closest approximate price of a kilogram of gold in pounds is £6370.

Step-by-step explanation:

The question given is a mathematics problem involving unit conversion and currency conversion. To find the cost in pounds (£) of a kilogram of gold at the given price and exchange rate, we need to follow these steps:

1. Convert pounds (lb) to kilograms (kg), since 1 lb is equal to approximately 0.453592 kg.
2. Calculate the price per kilogram based on the price given per pound.
3. Finally, apply the exchange rate to convert the price in dollars to pounds.

Given that the price of gold is 5310 per lb:

Price per kilogram in dollars would be 5310 divided by 0.453592, which equals $11706.49 (approximate).

Then we apply the exchange rate of 1.00 = £1.545 to convert the price:
£11706.49 * 0.545 = £6382.04

The closest answer to £6382.04 is option 3) £6370.