SOLUTION: You buy a commemorative coin for $20. The value of the coin increases at a rate of 3.5% per year.
How much will the coin be worth in 15 years?
After how many years will the
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Question 1039797: You buy a commemorative coin for $20. The value of the coin increases at a rate of 3.5% per year.
How much will the coin be worth in 15 years?
After how many years will the coin have doubled in value?
Found 2 solutions by Aldorozos, josmiceli:
Answer by Aldorozos(172) (Show Source): You can put this solution on YOUR website!
Go to google.com and type future value to understand what it is. Also learn about future value calculator to see how it works
The present value is 20
The rate is .035
The period is 15
Here is the formula
F=p(1+r)^n
P=20
R=.o35
N=15
Using calculator we calculate f which is the future value
F is around $33.50
If it is doubled then
40=20(1.035)^n
Here we have to calculate n which is the number of years. Dividing both sides by 20 we get
2=(1.035)^n
Using log
Log2 = log (1.035)^n
Log2=nlog (1.035)
We use calculator to find the two logs and we get n=20.
This means after 20 years the coin would worth $40
You have to learn how log works
Answer by josmiceli(19441) (Show Source): You can put this solution on YOUR website!
Let = the current value of the coin
The coin will be worth $33.51 in 15 yrs
---------------------
Double the value of the coin is
Let = time in years when coin is worth $40
Take the log of both sides
The coin will double in value in the 20th year
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