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tia_tia [17]
3 years ago
13

Although appealing to more refined tastes, art as a collectible has not always performed so profitably. During 2015, an auction

house sold a painting for a price of $1,080,000. Unfortunately for the previous owner, he had purchased it three years earlier at a price of $1,660,000.
What was his annual rate of return on this painting? (A negative answer should be indicated by a minus sign. Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.)
Business
1 answer:
VLD [36.1K]3 years ago
5 0

Answer: -13.35%

Explanation:

Based on the information given in the question, the annual rate of return on this painting will be calculated thus:

Sales price of painting = $1,080,000

Cost price of painting = $1,660,000

The sales Price formula is given as

= Cost price × (1 +r)³

1080000 = 1660000 × (1+r)³

1,080,000/1,660,000 = (1+r)³

0.65 = (1 + r)³

Annual rate of return r will now be:

= 0.6506^⅓ - 1

= -13.35%

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Answer:

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3 0
2 years ago
Vega corporation expects to pay a 4​% bonus on net income after deducting the bonus. assume the corporation reports net income o
Alex

Hey there!

the answer is

A credit to Employee Bonus Payable, $5,000

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7 0
2 years ago
a local partnership was in the process of liquidating and reported the following capital account balances: justice, capital (40%
bogdanovich [222]

Based on the capital account balances and the amount in the cash account, the amount that Zobart will receive is $15,467.

<h3>What will Zobart receive?</h3>

The amount that Zobart will receive can be found by the formula:

= (Deficit x percentage in partnership/ 75%) + Capital account balance

Solving for the amount going to Zobart gives:

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In conclusion, the amount to Zobart is $15,467.

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8 0
1 year ago
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Answer: $8,600

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The implicit cost here is therefore:

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6 0
3 years ago
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