MathDB
Achieving gains in a exchange machine...

Source:

February 19, 2011

Problem Statement

The exchange rate in a Funny-Money machine is ss McLoonies for a Loonie or 1s\frac{1}{s} Loonies for a McLoonie, where ss is a positive real number. The number of coins returned is rounded off to the nearest integer. If it is exactly in between two integers, then it is rounded up to the greater integer. (a)(a) Is it possible to achieve a one-time gain by changing some Loonies into McLoonies and changing all the McLoonies back to Loonies? (b)(b) Assuming that the answer to (a)(a) is "yes", is it possible to achieve multiple gains by repeating this procedure, changing all the coins in hand and back again each time?