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In September 1963, the first issue of the comic book X-MEN was issued. The original price for the issue was $0.15. By September 2013, 50 years later, the value of this comic book had risen to $9,200. What annual rate of interest would you have earned if you had bought the comic in 1963 and sold it in 2013?

Respuesta :

Answer:

Rate of interest = 24.67 %

Explanation:

Given:

Future value = $9,200

Present value = $0.15

Number of year = 50 year

Rate of interest = ?

Computation of rate of return:

[tex]Future\ value = Present\ value(1+r)^n\\\\9,200 = 0.15(1+r)^{50}\\\\61,333.3333 = (1+r)^{50}\\\\1.24667695 = 1 +r\\\\r=24.667695[/tex]

Rate of interest = 24.67 %