Question

You collect old coins. today, you have two coins each of which is valued at $100. one coin is expected to increase in value by 5.2 percent annually while the other coin is expected to increase in value by 5 percent annually. what will be the difference in the value of the two coins 25 years from now?

Answer 1

The coin increasing in value by 5.2% will be valued at $230, and the coin increasing by 5% will be valued at $225. They will have a $5 difference