What must the market value of the used vehicle be in order

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1. Your coin collection contains 60 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 2052, assuming they appreciate at an annual rate of 5.6 percent?

2. A delivery car had a first cost of $40,000, an annual operating cost of $16,000, and an estimated $3500 salvage value after its 6-year life. Due to an economic slowdown, the car will be retained for only 3 years and must be sold now as a used vehicle. At an interest rate of 12% per year, what must the market value of the used vehicle be in order for its AW value to be the same as the AW if it had been kept for its full life cycle?

Reference no: EM131840232

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