I am taking an online economics class right now. One of the questions from the Week 1 assignment was this:
Owning 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 5,000 pennies minted before 1982, and she intends on gifting the collection to you.
What is the collection's value based on metal content alone? Copper sells for $3.50 per pound and zinc for $1 per pound. It takes approximately 130 pre-1982 pennies to add up to one pound of total weight.
Answer
Selected Answer:
$129.81
Response Feedback:
Good job!
Each penny is worth about 2.6 cents for its metal content. The numismatic value of each coin is most likely much greater. Note: It is illegal to melt down coins.
Value of metal in collection = (5,000/130 lb)(0.95)($3.50/lb) + (5,000/130 lb)(0.05)($1.00/lb) = $129.81
The next day I googled as much as I could about this newly discovered notion. Here I am.