Question

FUCCEMU 0.04 million 4. Your grandfather left you his coin collection in his will. It contains sixty 1952 silver dollars. Assuming your grandfather purchased them at face value ($1 each) when they were new, how much is your collection worth today (2018)? Assume they appreciated at a rate of 10% annually. Show your work TOBOR

Answer 1

Answer to Q#4 (First question in the requested list): Accumulated worth of the silver today can be calculated using future value of lumpsum deposit formula because grandfather has purchased 60 silver dollars @ $1 each in 1952 by investing $60 then. After that, no subsequent silver purchases took place till 2018. So, Future value of a lumpsum deposit = Initial amount of deposit x (1 + Interest rate) Initial amount of deposit Interest rate # of years of deposit Silver dollars' worth in 2018 will be $60 (60 silver dollars x $1] 10% [Compounded annually] 66 (Time gap between 2018 and 1952, in years] $32,364.47 ($60 X (1+10%)^66 = $60 x 1.1^66 = $60 x 539.4078 = $32364.47]