Calculating Rates of Return [LO3] A coin sold at auction in 2017 for $2,897,000. The coin...

80.2K

Verified Solution

Question

Finance

Calculating Rates of Return [LO3]
A coin sold at auction in 2017 for $2,897,000. The coin had aface value of $10 when it was issued in 1795 and had previouslybeen sold for $310,000 in 1970.
Â Â
a.
At what annual rate did the coin appreciate from its firstminting to the 1970 sale? (Do not round intermediatecalculations and enter your answer as a percent rounded to 2decimal places, e.g., 32.16.)
b. What annual rate did the 1970 buyer earn on his purchase?(Do not round intermediate calculations and enter youranswer as a percent rounded to 2 decimal places, e.g.,32.16.)
c. At what annual rate did the coin appreciate from its firstminting to the 2017 sale? (Do not round intermediatecalculations and enter your answer as a percent rounded to 2decimal places, e.g., 32.16.)

Answer & Explanation Solved by verified expert

3.6 Ratings (602 Votes)

Part a Annual Rate formula Final valueInitial Value1number of years 1 100 Value of coin in 1795 10 Value of coin in 1970 310000 Numbers of years from 1795 to 1970 19701795 175 Annual See Answer

Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:

Unlimited Question Access with detailed Answers
Zin AI - 3 Million Words
10 Dall-E 3 Images
20 Plot Generations
Conversation with Dialogue Memory
No Ads, Ever!
Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!

Become a Member

Calculating Rates of Return [LO3] A coin sold at auction in 2017 for $2,897,000. The coin...

80.2K

Verified Solution

Question

Finance

Answer & Explanation Solved by verified expert

Get Answers to Unlimited Questions

Membership Benefits:

Other questions asked by students

XYZ stock price and dividend history are as follows: Year Beginning-of-Year Price Dividend Paid at Year-End 2010 $ 110 $ 3 2011 $...

Allen's hummingbird (Selasphorus sasin) has been studied by zoologist Bill Alther.â€ Suppose a small group of...

Long and detailed theory behind HPLC. An introduction to HPLC and how the technique/instrument work and...

try to find articles that deal with virtual servers and/or the cloud to discuss the problems...

Sketch label and mark the figure described below 11 Isosceles right triangle ABC with AM...

The price of diamond rings. A newspaper advertisement in the Straits Times of Singapore contained...

A bucket begins holding 30 kgs of sand The bucket is to be lifted to...

Perez Pointers Corporation expects to begin operations on January 1, 2019; it will operate as...

Mark has a great idea for business and investigates his idea. He spends $2,000 for...

Required information Use the following information for the Quick Study below. The following information applies...

On April 20, 2010, an explosion occurred in the Deepwater Horizon Platform which is located...

a.	At what annual rate did the coin appreciate from its firstminting to the 1970 sale? (Do not round intermediatecalculations and enter your answer as a percent rounded to 2decimal places, e.g., 32.16.)
b.	What annual rate did the 1970 buyer earn on his purchase?(Do not round intermediate calculations and enter youranswer as a percent rounded to 2 decimal places, e.g.,32.16.)
c.	At what annual rate did the coin appreciate from its firstminting to the 2017 sale? (Do not round intermediatecalculations and enter your answer as a percent rounded to 2decimal places, e.g., 32.16.)