Question

anonymous private collector purch Picasso entitled Angel Fermandez de Sou private 26 In 1995 an casso en The picture depicts Picasso's fi done in 1903 and was valued painting by for $29,152,000. The fer $29.1%edin a Barcelona cafe drinking absi The painting was done in 1903 and was at 5600. If the painting was owned by the same then until its sale in 1995, what rate of return ily receive on the $600 investment? e dd

Answer 1

Answer

P = $600

F = $29,152,000

n = 92 (1995 - 1903)

$F = P(1+i )^{^{^{n}}}$

$29,152,000/ $600 = $(1+i)^{^{^{92}}}$ $48586.6 or $48587

(1+i ) = $($48587)^{^{^{1/92}}}$   

i*= 0.124 or 12.4%