Your coin collection contains fifty 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. This rate is expected to continue. How much will your collection be worth when you retire in 2020

Question

Cindy

Business

31 January, 02:17

Your coin collection contains fifty 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. This rate is expected to continue. How much will your collection be worth when you retire in 2020

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Answers (1)

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Maci Haney · Answer 1

The correct answer is: $319.8.

Explanation:

The Annual Percentage Rate or APR is the cost per year of borrowing. By law, all financial institutions must show customers the APR of a loan or credit card, which indicates the real cost of the loan. APR is not compounded. Annual Percentage Yield (APY) is.

Thus, in the example:

Initial net worth = $50 Interest per year = ($50 x 7.6%) = $3,8 Total years = 2020-1949 = 71 Total interest = $3,8 x 71 = $269.8 Total net worth in 2020 = $50 + $269.8 = $319.8