Question

The Lincoln wheat penny was designed by Victor D.brenner in 1909. currently, the most valued penny is the 1909 S VDB penny. it was minted in san Francisco and only 484,000 were minted with the initials on the back, In 2015, the S VDB penny in uncirculated condition in worth $3,200, when will it be worth $20,000?

Answer 1

The 1909 S VDB penny will be worth $20,000 after a certain number of years. The formula for compound interest can be used to calculate when it will reach this value.

The value of the 1909 S VDB penny in uncirculated condition was $3,200 in 2015.

To find out when it will be worth $20,000, we need to determine the rate of increase in its value over the years.

Since we know the value in 2015, we can use the formula for compound interest to calculate when it will reach $20,000.

We can use the formula:

A = P
`(1 + r/n)^(nt)`

Where:

A is the final amount ($20,000)

P is the initial amount ($3,200)

r is the annual interest rate (unknown)

n is the number of times interest is compounded per year (usually 1)

t is the number of years

We can rearrange the formula to solve for r:

r =
`(A/P)^(1/(nt))` - 1

Plugging in the values, we get:

r =
`(20000/3200)^(1/(1*t)) - 1`

Now we can solve for t by rearranging the formula again:

t = (ln(A/P))/(n * ln(1 + r/n))

Using a calculator and trial-and-error, we can find the value of t when the equation equals 20,000.

Therefore, the 1909 S VDB penny will be worth $20,000 after a certain number of years.