Question

Assume that in 2014 an 1876 20$ double eagle sold for $18000

con CH4 Homework (13 points) o Question 7 (of 13) value 100 points Problem 4-8 Calculating Rates of Return [LO 3] Assume that in 2014, an 1876 $20 double eagle sold for $18,000 What was the rate of return on this investment? (Do not round intermediate calculations and enter Rate of return References eBook & Resources Worksheet Dificuity 1 Basic Secti Problem 4-8 Calculating Rates of Leaming Objective: 04-03 Calculate the Return [LO 3 return on an investment Check my work Search Windows View

Answer 1

r = [FV / PV]^1/n - 1

= [$18,000 / $20]^{1/(2014 - 1876)} - 1

= 1.0505 - 1 = 0.0505, or 5.05%