59.9k views
3 votes
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?

User APH
by
3.1k points

1 Answer

3 votes

Answer:

The collection is worth $4,535.35

Step-by-step 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

User Ari Gold
by
3.5k points