Question

Your coin collection contains 54 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 2064, assuming they appreciate at an annual rate of 4.5 percent?

Answer 1

To know how much will be you collection worth when you retire in the year 2064, we will use the formula of the future value or FV.

To find the FV of a lump sum, we use:

FV = PV(1 +r)^t where, t = 2064 – 1952 = 112 r = 4.5 x 100 = 0.45 PV = $54 Solution: tFV = $54(1.045)^112 = $7471.68