Your coin collection contains 50 1949 silver dollars. Your grandparents purchased them for their face value when they were new. These coins have appreciated at a 7.6 percent annual rate. How much will your collection be worth when you retire in 2020?

Question

Denise

Business

27 July, 02:29

Your coin collection contains 50 1949 silver dollars. Your grandparents purchased them for their face value when they were new. These coins have appreciated at a 7.6 percent annual rate. How much will your collection be worth when you retire in 2020?

+2

Answers (1)

Know the Answer?

Daniella Nicholson · Answer 1

The collection is worth $4,535.35

Explanation:

Giving the following information:

Your coin collection contains 50 1949 silver dollars. These coins have appreciated at a 7.6 percent annual rate.

According to the internet, the 1949 silver dollar had a face value of half a dollar.

We need to use the following formula:

FV = PV * (1+i) ^n

PV = 50*0.25 = $25

n = 71

i = 0.076

FV = 25 * (1.076^71) = $4,535.35