irst found in 1900. It had been previously sold for US$10 million in 1980. (i) At what annual rate did the diamond appreciate from 1900 to 1980? (ii) If the value increases at the same rate, identify the value of the diamond today.
irst found in 1900. It had been previously sold for US$10 million in 1980. (i) At what annual rate did the diamond appreciate from 1900 to 1980? (ii) If the value increases at the same rate, identify the value of the diamond today.
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
Section: Chapter Questions
Problem 1PS
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Question
You are required to estimate the value of the famous “Oppenheimer Blue Diamond” that
would be sold at the auction. The diamond had a face value of US$100,000 when it was
first found in 1900. It had been previously sold for US$10 million in 1980.
(i) At what annual rate did the diamond appreciate from 1900 to 1980?
(ii) If the value increases at the same rate, identify the value of the diamond today.
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