Register
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
1.9k views
4 votes
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

User Volkan Paksoy
by
4.2k points

1 Answer

3 votes

Answer:

The correct answer is: $319.8.

Step-by-step 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
User Thom
by
4.4k points
Ask a Question
Welcome to QAmmunity.org, where you can ask questions and receive answers from other members of our community.

4.5m questions

5.9m answers

Other Questions

Which of the following might indicate that you are uninterested in what someone is saying
In a financial crisis, the unemployment rates will likely be _____ and the number of bankruptcies will likely be _____. lower? lower?
What should you always do before choosing a final business name? A ) Check its frequency on a Web browser. B ) See if the domain name is available. C ) Run the name by everyone you can. D ) Make sure the
What can provide key data so you can develop a marketing plan that works
becca has $500 to open a checking account. she wants an account w the lowest fees. she writes about 12 paychecks per minth and her wmployer has direct deposit. she plans to only use her bank’s atm four
Link Copied!