Calculating Present Values You have just received notification that you “have won the $I million first prize in the Centennial Lottery. However, the prize will be awarded on your IOOth birthday (assuming you’re around to collect), 80 years from now.What is the present value of your windfall if the appropriate discount rate is 8.45 percent?”
Calculating Future Values Your coin collection contains fifty 1952 silver dollars. If your grandparents purchased them for their face value when they were new, how much will your collection be worth when you retire in 2063, assuming they appreciate at an annual rate of 4.8 percent?”
Calculating Growth Rates and Future Values In 1895. the first U.S. Open Golf Championship was held. The winner’s prize money was $150. In 2018, the winner’s check was $2,160,000. What was the annual percentage increase in the winner’s check over this period? If the winner’s prize increases at the same rate, what will it be in 2048?”
Calculating Rates of Return I n 2018, an Action Comics No. I , featuring the first appearance of Superman, was sold at auction for $573,600.The comic book was originally sold in 1938 for $.10. What was the annual increase in the value of this comic book?”
Calculating Rates of Return Although appealing to more refined tastes, art as a collectible has not always performed so profitably. During 2010, Deutscher-Menzies sold Arkie wider the Shower, a painting by renowned Australian painter Brett Whiteley, at auction for a price of $1,100,000.”
