Question

Assume a bronze sculpture sold in 2007 at auction for a price of $10,328,000. Unfortunately for the previous owner, he had purchased it in 1999 at a price of $12,383,000. Required: What was his annual rate of return on this sculpture? Do not include the percent sign (%). Enter rounded answer as directed, but do not use the rounded numbers in intermediate calculations Negative amount should be indicated by a minus sign. Round your answer to 2 decimal places( 32.16).) Rate of return
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Solution: Annual Rate of Return on the sculpture should be calculated by using the Rate formula in the excel where nper= 8 years; Present Value should be $12,383,000 and Future Value = $ 10,328,000, thus the negative rate will be -2.24.

Excel formula= RATE(8,,12383000,-10328000)

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