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In 2017, Leonardo da Vinci's painting Salvator Mundi sold for a record $451.3 million. In 1958, it sold for $130, equivalent in purchasing power to about $1,110 at 2017 prices. The painting was originally commissioned by King Louis XII of France in about 1500. The Wall Street Journal guesstimated that the king may have paid Leonardo the equivalent in purchasing power of $450,000 in 1519. a. What was the annual rate of appreciation in the price of the painting between 1958 and 2017 adjusted for inflation? Note: Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places. b. What was the annual estimated rate of appreciation in the price of the painting between 1519 and 2017 adjusted for inflation. Note: Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places. X Answer is complete but not entirely correct. a. Annual rate b. Annual estimated rate 5.89 X % 1.39 %

In 2017, Leonardo da Vinci's painting Salvator Mundi sold for a record $451.3 million. In 1958, it sold for $130, equivalent in purchasing power to about $1,110 at 2017 prices. The painting was originally commissioned by King Louis XII of France in about 1500. The Wall Street Journal guesstimated that the king may have paid Leonardo the equivalent in purchasing power of $450,000 in 1519. a. What was the annual rate of appreciation in the price of the painting between 1958 and 2017 adjusted for inflation? Note: Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places. b. What was the annual estimated rate of appreciation in the price of the painting between 1519 and 2017 adjusted for inflation. Note: Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places. X Answer is complete but not entirely correct. a. Annual rate b. Annual estimated rate 5.89 X % 1.39 %

Essentials Of Investments
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
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In 2017, Leonardo da Vinci's painting Salvator Mundi sold for a record $451.3 million. In 1958, it sold for $130, equivalent in purchasing power to about $1,110 at 2017 prices. The painting was originally commissioned by King Louis XII of France in about 1500. The Wall Street Journal guesstimated that the king may have paid Leonardo the equivalent in purchasing power of $450,000 in 1519. a. What was the annual rate of appreciation in the price of the painting between 1958 and 2017 adjusted for inflation? Note: Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places. b. What was the annual estimated rate of appreciation in the price of the painting between 1519 and 2017 adjusted for inflation. Note: Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places. X Answer is complete but not entirely correct. a. Annual rate b. Annual estimated rate 5.89 X % 1.39 %
Transcribed Image Text:In 2017, Leonardo da Vinci's painting Salvator Mundi sold for a record $451.3 million. In 1958, it sold for $130, equivalent in purchasing power to about $1,110 at 2017 prices. The painting was originally commissioned by King Louis XII of France in about 1500. The Wall Street Journal guesstimated that the king may have paid Leonardo the equivalent in purchasing power of $450,000 in 1519. a. What was the annual rate of appreciation in the price of the painting between 1958 and 2017 adjusted for inflation? Note: Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places. b. What was the annual estimated rate of appreciation in the price of the painting between 1519 and 2017 adjusted for inflation. Note: Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places. X Answer is complete but not entirely correct. a. Annual rate b. Annual estimated rate 5.89 X % 1.39 %
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