Calculating Rates of Return [LO3] A coin sold at auction in 2017 for $2,897,000. The coin...

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Calculating Rates of Return [LO3]
A coin sold at auction in 2017 for $2,897,000. The coin had aface value of $10 when it was issued in 1795 and had previouslybeen sold for $310,000 in 1970.
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a.
At what annual rate did the coin appreciate from its firstminting to the 1970 sale? (Do not round intermediatecalculations and enter your answer as a percent rounded to 2decimal places, e.g., 32.16.)
b. What annual rate did the 1970 buyer earn on his purchase?(Do not round intermediate calculations and enter youranswer as a percent rounded to 2 decimal places, e.g.,32.16.)
c. At what annual rate did the coin appreciate from its firstminting to the 2017 sale? (Do not round intermediatecalculations and enter your answer as a percent rounded to 2decimal places, e.g., 32.16.)

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Part a Annual Rate formula Final valueInitial Value1number of years 1 100 Value of coin in 1795 10 Value of coin in 1970 310000 Numbers of years from 1795 to 1970 19701795 175 Annual See Answer

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Calculating Rates of Return [LO3] A coin sold at auction in 2017 for $2,897,000. The coin...

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Finance

Answer & Explanation Solved by verified expert

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a.	At what annual rate did the coin appreciate from its firstminting to the 1970 sale? (Do not round intermediatecalculations and enter your answer as a percent rounded to 2decimal places, e.g., 32.16.)
b.	What annual rate did the 1970 buyer earn on his purchase?(Do not round intermediate calculations and enter youranswer as a percent rounded to 2 decimal places, e.g.,32.16.)
c.	At what annual rate did the coin appreciate from its firstminting to the 2017 sale? (Do not round intermediatecalculations and enter your answer as a percent rounded to 2decimal places, e.g., 32.16.)