Lance Murdock purchased a wooden statue of a Conquistador for $7, 100 to put in
ID: 2741788 • Letter: L
Question
Lance Murdock purchased a wooden statue of a Conquistador for $7, 100 to put in his home office 9 years age. Lance has recently married, and his home office is being converted into a sewing room. His now who, who has far better taste than Lance, thinks the Conquistador is hideous and must go immediately. Lance decided to sell it on a - Bay and only received $4, 800 for it, and so he look a loss on the investment. What was his rate of return, that is, the value of? What was Lance Murdock's rate of return, that is, the value of ohm Enter a negative percentage for a loss % (Round to two decimal places.)Explanation / Answer
Purchase price = $7,100
Slling price = $4,800
Therefore,
Loss = $7,100 - $4,800 = $2,300
And,
Rate of return = $2,300 / $7,100 = 0.3239 or 32.39%
Since it is a loss, the rate of return should be entered as a negative percentage.
Thus,
Rate of return = -32.39%
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