You bought a painting 7 years ago as an investment. You originally paid $127,000 for it. If yousold it for $484,000, what is your annual return on the investment? Assume annualcompounding. (Round to 100th of a percent and enter your answer as a percentage, e.g.,12.34 for 12.34%)Answer:

To determine the annual return on your investment, we'll use the concept of compound interest. The…

Answered: You bought a painting 7 years ago as an…

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter5: The Time Value Of Money

Section: Chapter Questions

Problem 16P

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You bought a painting 7 years ago as an investment. You originally paid $127,000 for it. If you sold it for $484,000, what is your annual return on the investment? Assume annual compounding. (Round to 100th of a percent and enter your answer as a percentage, e.g., 12.34 for 12.34%) Answer: