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Abe, Beth, Charles, and David have decided to invest in rare coins. A dealer has oered...

Abe, Beth, Charles, and David have decided to invest in rare coins. A dealer has oered to sell them a parcel containing 100 identical coins for $10, 000. Each person invests all that he or she can aord, but there is not quite enough money, so Charles asks his Aunt Esther to join the group. The coins will be apportioned by the Hamilton method. Here are the amounts contributed: Abe: $3, 619 Beth: $1, 862 Charles: $2, 258 David: $2, 010 Esther: $251 Total: $10, 000 (a) How should the coins be apportioned among the ve contributors? (b) After the coins are distributed, the dealer mentions that there will be $50 in excise tax. Everyone empties his or her wallet: Abe nds $16 more, Beth has $2, Charles has $1, and David nds $32. This adds up to $51, so $1 is returned to Aunt Esther. The apportionment is recalculated. Does one of the coins changes hands? If so, who has to give a coin to whom? Explain what happened.

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jeff jeffy answered 9 months ago
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