Question

Your coin collection contains 42 1948 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 2057, assuming they appreciate at a 8 percent annual rate

Answer 1

Answer:

$184,687.98

Explanation:

assuming that silver dollars were issued in 1948 (actually no silver dollars were produced that year), your grandparents purchased them at $42. From 1948 to 2057 there are 109 years:

future value = present value x (1 + r)ⁿ

• present value =$42
• r = 8%
• n = 109 years

future value = $42 x 1.08¹⁰⁹ = $184,687.98