The Diagonal Stamp Company, which sells used postage stamps to collectors, advertises that its average price has increased from $1 to $9 in the last 10 years. Thus, management states, investors who had purchased stamps from Diagonal 10 years ago would have received a 100% rate of return each year. What is the annual rate of return? The answer in the textbook is given as 23.11%. Can you please show how to get that?
The Diagonal Stamp Company, which sells used postage stamps to collectors, advertises that its average price has increased from $1 to $9 in the last 10 years. Thus, management states, investors who had purchased stamps from Diagonal 10 years ago would have received a 100% rate of return each year. What is the annual rate of return? The answer in the textbook is given as 23.11%. Can you please show how to get that?
Chapter5: The Time Value Of Money
Section: Chapter Questions
Problem 6P
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The Diagonal Stamp Company, which sells used postage stamps to collectors, advertises that its average price has increased from $1 to $9 in the last 10 years. Thus, management states, investors who had purchased stamps from Diagonal 10 years ago would have received a 100%
The answer in the textbook is given as 23.11%. Can you please show how to get that?
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