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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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6 0
2 years ago
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Answer:

Suzi

Explanation:

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8 0
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(Being Carter’s withdrawal from the partnership is recorded)

For recording this we debited the carter capital as it shows the withdrawn amount and credited the able capital and baker capital so that the total withdrawn collected from these partners could come

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