You collect old coins. Today, you have two coins each of which is valued at $250. One coin is expected to increase in value by 6 percent annually while the other coin is expected to increase in value by 4.5 percent annually. What will be the difference in the value of the two coins 15 years from now?
A)$115.32
B)$208.04
C)$241.79
D)$254.24
E)$280.15

Question

Quizplus · Accepted Answer

Future value = $250 F1F1F1S1F1F1F10 (1 + .06)¹⁵ = $599.14Future value = $250 F1F1F1S1F1F1F10 (1 + .045)¹⁵ = $483.82Difference = $599.14 - $483.82 = $115.32

You Collect Old Coins