Question

Your coin collection contains ten 1949 silver dollars. If your grandparents purchased the coins for their face value when they were new, how much will your collection be worth when you retire in 2065, assuming the coins appreciate at an annual rate of 5.1 percent?

$3,440.63

$2,329.29

$3,348.98

$3,205.64

$2,644.29

Answer 1

Solution:
	Answer is 4th option $3,205.64
Working Notes:
	Ten 1949 silver dollars bought at face value means only $10 was paid for the these Ten 1949 silver dollars.
	Future value at end of 2065 = Value at 1949 x ( 1+ appreciation rate )^(no of years )
	Value at 1949 = $10
	Appreciation rate = 5.1%
	no of years = 2065 - 1949 = 116
	Future value at end of 2065 = Value at 1949 x ( 1+ appreciation rate )^(no of years )
	Future value at end of 2065 = $10 x ( 1+ 5.1% )^116
	Future value at end of 2065 = $3205.642293
	Future value at end of 2065 = $3,205.64
Hence	Collection of worth when you retire in   is 2065 $3,205.64
Please feel free to ask if anything about above solution in comment section of the question.