Question

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

Answer 1

Solution:

Given data:

• Principle = $ 60 ( as there are 60 - 1 dollar coins )
• Interest rate = 10%
• Total number of years = 2018 - 1952 = 66 years
• From 1952 to 2018 the coins acknowledge at 10 %.

Compute compound interest annually for this time span :

Particulars	Amount	Amount
Amount	= Principle (1+r)^time period = $ 60(1+0.10)^66 = $ 60(539.40) = $ 32,364	$ 32,364