![Problem 5-14 Calculating Interest Rates [LO3] Assume that in 2010, a gold dollar minted in 1886 sold for $134,000. For this to have been true, what rate of return did this coin return for the lucky numismatist? (Do not round intermediate calculations and round your final answer to 2 decimal places. (e.g., 32.16)) Rate of return](http://img.homeworklib.com/questions/5bdca580-78b4-11ea-8567-e975ae3da9ba.png?x-oss-process=image/resize,w_560)
Homework Answers
Value in 1886 = $1
Value in 2010 = $134,000
Number of years = 2010-1886 = 124 years
Future value = Present value * (1 + r)n
$134,000 = $1*(1+r)124
1+r = 1340001/24
r = 1.6354 - 1 = 0.6354
Rate of return = 63.54%
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