19.03.2023 - 20:02

Your coin collection contains 51, 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 2059, assuming they appreciate at an annual rate of 5.2 percent?

Your coin collection contains 51, 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 2059, assuming they appreciate at an annual rate of 5.2 percent?

Answers (1)
  • Antonik
    April 1, 2023 в 15:11

    To calculate the future value of the coin collection, we need to use the formula for compound interest:

    FV = PV x (1 + r)^n

    where FV is the future value, PV is the present value (in this case, the face value of the coins), r is the annual interest rate, and n is the number of years.

    In this case, the present value of the coins is their face value, which is $51,1952 = $51.52. The annual interest rate is 5.2%, and the number of years until 2059 is:

    2059 - 2021 = 38 years

    So, plugging in the values:

    FV = $51.52 x (1 + 0.052)^38 FV = $51.52 x 2.989 FV = $154.13

    Therefore, if the 1952 silver dollars appreciate at an annual rate of 5.2%, your coin collection will be worth \approx imately $154.13 in 2059, assuming you hold onto them until then. It's worth noting that this calculation assumes that the coins will appreciate at a consistent rate each year, which may not necessarily be the case. Additionally, the actual value of the coins could be higher or lower depending on various factors such as demand, condition, and rarity.

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