If the price of gold at the morning fixing in london was $4730 per lb, what would a kilogram of gold have cost in £ (pounds)? (assume an exchange rate of $1.00 = £ 0.611)

1 kilogram of gold have a cost of 6358 £

Explanation:

1 kilogram = 2.2 lb

So if     1 lb costs 4730 $

then   2.2 lb costs X

X = (2.2 × 4730) / 1 = 10406 $

Now we exchange dollars $ in pounds £:

if               1 $ is equal to 0.611 £

then   10406 $ is equal to X  £

X = (10406 / 0.611) / 1 = 6358 £

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