Elimination of the penny
The elimination of the penny is a decision taken by some governments in which they stop minting the one cent coin. There are a couple of examples of countries that have decided to discontinue the penny due to a variety of reasons, like high production cost (the penny is worth less than its cost of production), low purchasing power and low utility. Some examples are Australia, Finland, New Zealand, Norway, the Netherlands, Sweden and Canada.[1] Canada's Economic Action Plan has phased out the penny in 2012.[2] At the time, the production cost was 1.6 cents per penny.[3]
Rounding[edit]
When the penny is no longer minted, the prices will have to be rounded. The following is a table of price rounding called the Swedish method.[4]
| Price | Rounded to |
|---|---|
| $9.98 | $10.00 |
| $9.99 | |
| $10.00 | |
| $10.01 | |
| $10.02 | |
| $10.03 | $10.05 |
| $10.04 | |
| $10.05 | |
| $10.06 | |
| $10.07 |
References[edit]
- ↑ "Canada cuts costs by eliminating penny, while US still clings to iconic coin". FoxNews.com. 4 February 2013. Retrieved 12 October 2015.
Other countries have already dropped the penny, including Australia, Finland, New Zealand, Norway, the Netherlands and Sweden.
- ↑ "Phasing out the Penny | Canada's Economic Action Plan". ActionPlan.gc.ca. Retrieved 12 October 2015.
- ↑ "Canada cuts costs by eliminating penny, while US still clings to iconic coin". FoxNews.com. 4 February 2013. Retrieved 12 October 2015.
The estimated cost in Canada was 1.6 cents per penny.
- ↑ "Save the penny or leave the penny?". www.cbc.ca. Retrieved 2015-10-12.
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