Question

Your coin collection contains fifty 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 2063, assuming they appreciate at an annual rate of 4.8 percent?

Value of collection ___________

Answer 1

Future Value Calculation:
Particulars	Amount
Present Value	$            50.00
Int Rate	4.80%
Periods	111
Future Value = Present Value * ( 1 + r )^n
= $ 50 ( 1 + 0.048) ^ 111
= $ 50 ( 1.048 ^ 111)
= $ 50 * 182.013
= $ 9100.65
Future Value:
FV = PV (1+r)^n
Where r is Int rate per period
n - No. of periods

Value of the collection at the time of retirement is 9100.65