1.00 points 15 Calculating Rates of Return Lo3) A coin that was featured in a fa
ID: 2620551 • Letter: 1
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1.00 points 15 Calculating Rates of Return Lo3) A coin that was featured in a famous novel sold at auction in 2014 for $3, 450 500 The coin had a face value of $1 when it was issued in 1792 and had previously been sold for $385,000 in 1973. At what annual rate did the coin appreciate from its first minting to the 1973 sale? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places, e.g., 32.16 Rate of return What annual rate did the 1973 buyer earn on his purchase? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places, e.g. 32.16.) Rate of return At what annual rate did the coin appreciate from its first minting to the 2014 sale? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places eg, 3216) Rate of return ReferenceseBook & Resources WorksheetExplanation / Answer
1)
rate of return is
=(385000/1)^(1/(1973-1792))-1
=7.36%
2)
rate of return is
=(3450500/385000)^(1/(2014-1973))-1
=5.49%
3)
rate of return is
=(3450500/1)^(1/(2014-1792))-1
=7.02%
The above should be the answer..
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