Question

A troy ounce (31.1035 g) of gold is currently worth $1,196. How many ounces of gold (to one decimal place) could be bought for €10,000 if USD 1.1343 = €1?

a) 26.7 ounces
b) 31.1 ounces
c) 33.1 ounces
d) 27.8 ounces

Answer 1

To determine how many troy ounces of gold can be bought for €10,000, calculate the equivalent amount in dollars using the exchange rate, then divide by the price of gold per troy ounce. However, the provided options do not match the calculation, indicating a possible error in the question.

Step-by-step explanation:

To calculate the number of troy ounces of gold that can be bought for €10,000, we first need to understand the conversion rate between euros and U.S. dollars, as well as the price of a troy ounce of gold in dollars. Given the exchange rate of USD 1.1343 = €1, we can calculate how many dollars we have:

€10,000 * USD 1.1343/€1 = USD 11,343

Now, divide this dollar amount by the cost per troy ounce of gold to find how many ounces can be purchased:

USD 11,343 / $1,196 per ounce = 9.48 ounces (approximately)

However, as the values in the question do not perfectly match the conversion details, we are unable to provide an exact answer from the provided options.