A stamp collection is purchased for $1,000. Twenty years later, the owner is told that the collection is worth quite a bit of money! If the rate of return on the stamp collection is 4% per year, what is the current value of the stamp collection? In your final answer, include all of your calculations.

The current value of the stamp collection is of $2,191.

Step-by-step explanation:

Compound interest:

The compound interest formula is given by:

Where A(t) is the amount of money after t years, P is the principal(the initial sum of money), r is the interest rate(as a decimal value), n is the number of times that interest is compounded per year and t is the time in years for which the money is invested or borrowed.

A stamp collection is purchased for $1,000.

This means that

The rate of return on the stamp collection is 4% per year

This means that

So

What is the current value of the stamp collection?

This is A(20). So

The current value of the stamp collection is of $2,191.

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step-by-step explanation:

boxplot e is the answer