Question

In March 1963, Ironman was first introduced in issue number 39 of Tales of Suspense. The original price for that issue was 12 cents. By March of 2015, 52 years later, the value of this comic book had risen to $9,000. What annual rate of interest would you have earned if you had bought the comic in 1963 and sold it in 2015 (52 years later)? The annual rate of interest you would have earned if you had bought the comic in 1963 and then sold it in 2015 (52 years later) is 1 %. (Round to three decimal places.) Enter your answer in the answer box and then click Check Answer. All parts showing Clear All Check Answer Question 23 ( 1) Question 24 (0/1)

Answer 1

This question requires application of basic time value of money function, according to which FV = PV * (1 + r)" where FV is Future Value, PV is present value, n is number of periods and r is rate per period

$9000 = 0.12 * (1 + r)^{52}$

$75000 = (1 + r)^{52}$

1.2409 = 1 + r

r = 0.24094

r = 24.094%