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This is intended to be a fun problem.
Yeah and it seems so :) It throws a number of observations at once, but none of them provide immediate clue!
Thank you very much, it is ready:
As a sidenote this King looks quite greedy, reminding of the tale of the Roman general Terentius who was proposed reward by emperor - in form of the sequence of coins doubling in size. I can't find the source - here it is pretty well known from Jacob Perelman's 1934 book "Live Math" for kids - and I only found a comment that "the tale is and adaptation from the story found in manuscript in one of private collections in England".
Clive:
This is awesome; thank you.
Very much a problem in your style: eminently fair, with all the clues right in the text, yet with enough landmines to make the solvers trip on their first try.
V.
Vladimir,
Thanks, I'm glad you liked the problem. I hope to keep on sending them in, every now and again.