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 2067, assuming they appreciate at an annual rate of 4.3 percent? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)
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 2067, assuming they appreciate at an annual rate of 4.3 percent? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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![**Educational Website Content: Future Value Calculation of a Coin Collection**
---
### Coin Collection Appreciation Analysis
**Scenario:**
You have a coin collection that contains fifty 1952 silver dollars. If your grandparents purchased these coins at their face value when they were new, you need to determine the worth of your collection when you retire in the year 2067. The annual appreciation rate for these coins is projected to be 4.3%.
**Objective:**
Calculate the future value of this coin collection without rounding intermediate calculations but round the final answer to 2 decimal places (e.g., 32.16).
**Calculation Requirement:**
- Number of coins: 50
- Initial face value of each coin: $1 (Total initial value: $50)
- Annual appreciation rate: 4.3%
- Time period: 2067 - 1952 = 115 years
**Instructions:**
Using the formula for future value:
\[ \text{Future Value} = \text{Present Value} \times (1 + \text{rate})^{\text{time}} \]
### Interactive Element:
Below is an interactive field where you can input your calculated future value based on the given parameters. Remember, the exact steps to solve involve finding the compound interest using the values provided.
```
Future value [Input Field]
```](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F0505985e-243e-4b9e-b7a6-bbe3450b2962%2F51d407dc-92e2-47ae-a18c-3e152baab477%2Fvsi1zu_processed.jpeg&w=3840&q=75)
Transcribed Image Text:**Educational Website Content: Future Value Calculation of a Coin Collection**
---
### Coin Collection Appreciation Analysis
**Scenario:**
You have a coin collection that contains fifty 1952 silver dollars. If your grandparents purchased these coins at their face value when they were new, you need to determine the worth of your collection when you retire in the year 2067. The annual appreciation rate for these coins is projected to be 4.3%.
**Objective:**
Calculate the future value of this coin collection without rounding intermediate calculations but round the final answer to 2 decimal places (e.g., 32.16).
**Calculation Requirement:**
- Number of coins: 50
- Initial face value of each coin: $1 (Total initial value: $50)
- Annual appreciation rate: 4.3%
- Time period: 2067 - 1952 = 115 years
**Instructions:**
Using the formula for future value:
\[ \text{Future Value} = \text{Present Value} \times (1 + \text{rate})^{\text{time}} \]
### Interactive Element:
Below is an interactive field where you can input your calculated future value based on the given parameters. Remember, the exact steps to solve involve finding the compound interest using the values provided.
```
Future value [Input Field]
```
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