Naldo is considering selling a painting he inherited from his grandparents and which cost $200 when purchased 72 years ago.He accepted an offer for $22 000 for it recently.What is the annualized rate of return on this painting?
A)1)12%
B)2)75%
C)11.7%
D)6)75 %

Question

Quizplus · Accepted Answer

The annualized rate of return can be calculated using the formula for compound annual growth rate (CAGR): CAGR = (Ending Value/Beginning Value)^(1/Number of Years) - 1. Plugging in the values: CAGR = ($22,000/$200)^(1/72) - 1, which approximately equals 6.75%.

Naldo Is Considering Selling a Painting He Inherited from His