Question

Mrs Jefferson purchased an antique for $450. Ten years later she sold this statue for $750 if the statue is viewed as an investment, what annual rate did she make

Answer 1

20

Explanation:

The beginning price is 450 and the end price is 750. With a ten year gap that makes the value rise, the equation would be 750-450(.1)

750-450(.1)=200(.1)

200(.1)=20

The annual rate is $20 per year

To check this, we may say this equation:

20(10)+450

200+450

750

(10 for the years)