Interest rate. In 1972, Bob purchased a new Datsun 240Z for $2,500. Datsun later changed its name to Nissan, and the 1972 Datsun 240Z became a classic. Bob kept his car in excellent condition and in 2002 could sell the car for seven times what he originally paid. What was Bob's annualized rate of return for the 30 years he owned this car? If he keeps the car for another thirty years and earns the same rate, what could he sell the car for in 2032? What was Bob's annualized rate of return for the 30 years he owned this car? % (Round to two decimal places.)
Interest rate. In 1972, Bob purchased a new Datsun 240Z for $2,500. Datsun later changed its name to Nissan, and the 1972 Datsun 240Z became a classic. Bob kept his car in excellent condition and in 2002 could sell the car for seven times what he originally paid. What was Bob's annualized rate of return for the 30 years he owned this car? If he keeps the car for another thirty years and earns the same rate, what could he sell the car for in 2032? What was Bob's annualized rate of return for the 30 years he owned this car? % (Round to two decimal places.)
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Interest rate. In 1972, Bob purchased a new Datsun 240Z for $2,500. Datsun later changed its name to Nissan, and the 1972 Datsun 240Z became a
classic. Bob kept his car in excellent condition and in 2002 could sell the car for seven times what he originally paid. What was Bob's annualized rate of
return for the 30 years he owned this car? If he keeps the car for another thirty years and earns the same rate, what could he sell the car for in 2032?
What was Bob's annualized rate of return for the 30 years he owned this car?
% (Round to two decimal places.)
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