Your coin collection contains fifty-four 1941 silver dollars. Your grandparents purchased them for their face value when they were new. These coins have appreciated at a 10 percent annual rate. How much will your collection be worth when you retire in 2060?

A. $3,611,008

B. $4,421,008

C. $3,987,456

D. $4,122,394

E. $4,551,172

The correct answer is 3.

Explanation:

Giving the following information:

Your coin collection contains fifty-four 1941 silver dollars. These coins have appreciated at a 10 percent annual rate.

To calculate the future value, we need to use the following formula:

FV = PV * (1+i) ^n

i = 0.10

PV = 54

n = 2060 - 1942 = 119

FV = 54*1.10^119 = 4,551,172.47