Answered

​(Related to Checkpoint​ 5.6) ​ (Solving for ilong dashfinancial calculator​ needed) In September​ 1963, the first issue of the comic book ​X-MEN was issued. The original price for the issue was ​$0.12. By September 2016​, 53 years​ later, given the condition​ it's in, the value of this comic book had risen to ​$14 comma 500. What annual rate of interest would you have earned if you had bought the comic in 1963 and sold it in 2016​?

Answer :

TomShelby

Answer:

r = 24.71%

purchase the comin in 1963 and selling in 2016 will achieve a 24.71% return on investment

Explanation:

the original value was 0.12

then after 53 years the future value is 14,500

We need to solve for the rate at which that nominal amount becomes a future value of 14,500 dollars in 53 years:

[tex]N(1+r)^{53}=FV\\0.12(1+r)^{53}=14,500\\r = \sqrt[53]{14,500/0.12} -1[/tex]

r = 0.247068519

r = 24.71%

Other Questions