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SIZIF [17.4K]
3 years ago
9

Martin's coin collection contains hundred 1960 silver dollars. Her grandparents purchased them at their face value ($50 each) in

1960. These coins have appreciated by 3.2 percent annually. How much will the collection be worth in 2020
Business
1 answer:
Readme [11.4K]3 years ago
4 0

Answer:

FV= $33,094.2

Explanation:

Giving the following information:

Present value (PV)= 50*100= $5,000

Number of periods (n)= 2020 - 1960= 60 years

Apreciation rate (g)= 3.2% = 0.032

<u>To calculate the value of the collection in 2020, we need to use the following formula:</u>

Future value= PV*(1 + g)^n

FV= 5,000*(1.032^60)

FV= $33,094.2

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