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Your coin collection contains 52 1952 silver dollars. If your grandparents purchased them for their face value when they were new, how much will your collection be worth when you retire in 2062, assuming they appreciated at an annual rate of 4.3%?

a. $341.74

b. $492.61

c. $624.99

d. $810.28

User Fefe
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1 Answer

3 votes

Final answer:

The future value of the coin collection, when calculated using the compound interest formula, exceeds the provided options. Hence, the collection's value in 2062 cannot be conclusively determined from the given choices without additional information.

Step-by-step explanation:

The student's question involves calculating the future value of a coin collection appreciating at an annual rate. To arrive at the value of the coin collection in 2062, we need to use the formula for compound interest:

FV = PV (1 + r)^n

Where FV is the future value, PV is the present value (initial investment), r is the annual interest rate (as a decimal), and n is the number of years the money is invested. Given that the present value is the face value of the 52 silver dollars (52 dollars), the annual interest rate is 4.3% (0.043 as a decimal), and the number of years is from 1952 to 2062 (110 years), we can plug these into the formula:

FV = 52 * (1 + 0.043) ^110

Calculating this, we find that the future value of the coin collection when the student retires in 2062 would exceed any of the choices provided (a-d). Therefore, the question might contain some inconsistencies or require additional information to provide one of the listed answers.

User Frank Van Eykelen
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