What is the future worth of the stamp collection

Assignment Help Business Economics

Reference no: EM131809297

Stamp collecting has become an increasingly popular-and expensive-hobby. One favorite method is to save plate blocks (usually four stamps with the printing plate number in the margin) of each new stamp as it is issued. With rising postage rates and increased numbers of new stamps being issued, this collecting plan costs more each year. Stamps have been a good place to invest money over the last 10 years, as the demand for stamps previously issued has caused resale prices to increase 18% each year. Suppose a collector purchased $100 worth of stamps 10 years ago, and increased his purchases by $50 per year in each subsequent year. After 10 years of stamp collecting, what is the future worth of the stamp collection?

Reference no: EM131809297

Questions Cloud

Determining the annual property taxes : Assuming that you want a 10% rate of return, at what net price would you have to sell the land 15 years hence?

Compare benefits and drawback of installing office : Compare the benefit and drawback of installing office application on your personal computer versus using browser-based office online application for schoolwork.

What is the future worth at retirement : An individual who makes $32,000 per year anticipates retiring in 30 years. If his salary is increased by $600 each year and he deposits 10% of his yearly salary

Calculate the standard error of the estimate : Calculate the standard error of the estimate. Given that the mean of the response variable is 345, does the model seem promising? Explain.

What is the future worth of the stamp collection : After 10 years of stamp collecting, what is the future worth of the stamp collection?

What is the future worth in 5 years : The interest rate is 16% per year and there are 48 compounding periods per year. The principal is $50,000. What is the future worth in 5 years?

What are the combined total department costs : What are the combined total department costs for the producing departments after allocating the service department costs

Examining alternate sites for a new london airport : In the early 1980s, planners were examining alternate sites for a new London airport.

What was the future worth of savings : If the savings account paid 6% interest, compounded monthly, what was the future worth of his savings immediately after the last deposit?

User Account

All Pages