Hi, Could you please help me understand that when I take 8.23% and I put it into the equation of (1 + 8.23)^12, I do not get = 2.5833. I get a huge number .How do you get the result of 2.5833 when using the percentage of 8.23?Thank you ule-mp.com.At one time at least, a rule of thumb in the rarefied world of fine art collecting was "yourmoney back in 5 years, double your money in 10 years." Given this, let's see how an invest-ment stacked up. In 2013, the Pablo Picasso painting Le Rêve was sold for $155 million.The painting had reached a level of notoriety in part because its owner, casino magnateSteve Wynn, had put his elbow through the middle of the painting. Wynn had purchasedthe painting 12 years earlier in 2001 for an estimated $60 million. So was Wynn's gamblea winner?The rule of thumb has us doubling our money in 10 years; so, from the Rule of 72, wehave that 7.2 percent per year was the norm. The painting was resold in about 12 years. Thepresent value is $60 million, and the future value is $155 million. We need to solve for theunknown rate, r, as follows:$60,000,000 = $155,000,000/(1+r)¹²(1+r) ¹² = 2.5833Solving for r, we find that Wynn earned about 8.23 percent per year-a little better thanthe 7.2 percent rule of thumb.

Concept:Using formula Amount=Principal (1+rate/100)^time

, Could you please help me understand that when I take 8.23% and I put it into the equation of (1 + 8.23)^12, I do not get = 2.5833. I get a huge number . How do you get the result of 2.5833 when using the percentage of 8.23? Thank you

, Could you please help me understand that when I take 8.23% and I put it into the equation of (1 + 8.23)^12, I do not get = 2.5833. I get a huge number . How do you get the result of 2.5833 when using the percentage of 8.23? Thank you

Intermediate Algebra

19th Edition

ISBN:9780998625720

Author:Lynn Marecek

Publisher:Lynn Marecek

Chapter2: Solving Linear Equations

Section2.2: Use A Problem Solving Strategy

Problem 2.53TI: Eduardo noticed that his new car loan papers stated that with a 7.5% simple interest rate, he would...

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