Question

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

Answer 1

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

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

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

FV= 5,000*(1.032^60)

FV= $33,094.2