Question

in 2011, an Action Comics no. 1, featuring first appearance of superman, was sold at auction for $2,161,000. The comic book was originally sold in 1938 for $.10. What was the annual increase in the value of this comic book?

Answer 1

Price of book in 1938 = $ 0.10

Price of book in 2011 = $ 2,161,000

Number of years over 1938-2011 = 2011 - 1938 = 73

Annual increase in the price = $((\frac{\text{Price of book in 2011}}{\text{Price of book in 1938}}) ^ \frac{1}{\text{Number of years}} - 1 ) * 100$

⇒ Annual increase in the price = $((\frac{2,161,000}{0.1}) ^ \frac{1}{73} - 1 ) * 100$

⇒ Annual increase in the price = (1.260302283  - 1 ) × 100

⇒ Annual increase in the price = 0.260302283 × 100

⇒ Annual increase in the price = 26.0302283 %

⇒ Annual increase in the price = 26%

Hence, the comic book price increased by 26% annually