Question

1

James purchases a rare coin for $450. The coin appreciates at a rate of 1.2% each year. How much will the coin be worth after 25 years?

Answer 1

Answer: $585

Explanation:

Price of Rare Coin = $450
Rate at which it appreciates = 1.2%
Price of Rare Coin after 25 years = ?

Therefore,
= 1.2 * 25 = 30%

Hence, price of coin after 25 years:
= (30/100 * 450) + 450
= 135 + 450
= 585

Therefore,
The coin would cost $585 after 25 yrs.