When is a billion not a billion?

By THIS IS MONEY
Updated:

 

I have found out that in England, a billion is made up of 12 digits and in America it is made up of nine digits. So if I had $15bn, how much would that be in sterling? DP, Hatfield.

Linda Whitney says: At last - the $15bn question! According to Whitaker's Almanac, a UK billion is million million (1000,000,000,000). A US billion is a thousand million (1000,000,000).

Whitaker's also points out that the American billion (1000,000,000) is now universally used by statisticians - and that goes for the financial markets too. To convert $15bn to Sterling you divide it by 1.37 (tourist rate at 28 June) to give you £10,948,905,109.40p - that's £10.9bn using the US definition of a billion, which is the one that would be used by any bank or exchange house doing the conversion.

But if you used the UK definition, the result would be £10,948,905,109,400.00p - £10,948.9bn. But I believe the actual amount of money would be the same - it is only the words you use to describe that sum that would change.

By the by, here's Whitaker's definition of a trillion and a quadrillion:

• A trillion = 1 million x 1 billion (UK), 1 million x 1 million (US);

• A quadrillion = 1 million x 1 trillion (UK), or 1 million x 1 bn (US).

And, DP of Hatfield, if you've actually GOT $15bn, send me your full address, I'll be right round to help you count it.

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