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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%