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Bingel [31]
3 years ago
7

You just purchased two coins at a price of $1,270 each. Because one of the coins is more collectible, you believe that its value

will increase at a rate of 6.1 percent per year, while you believe the second coin will only increase at 5.5 percent per year. If you are correct, how much more will the first coin be worth in 18 years?
Mathematics
1 answer:
Karolina [17]3 years ago
7 0

Answer:

The first coin will be worth $137.16 more than the second coin.

Step-by-step explanation:

Interest formula = i = prt

For coin #1:

p = 1270

r = 0.061

t = 18

i = (1270)(0.061)(18)

The first coin will be worth $2664.46 after 18 years.

For coin #2:

p = 1270

r = 0.055

t = 18

i = (1270)(0.055)(18)

The second coin will be worth $2527.30 after 18 years.

Subtract the value of coin #2 from coin #1.

2664.46 - 2527.30 = 137.16

In conclusion, the first coin will be worth $137.16 more than the second coin after 18 years.

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