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Assume that in 2018, a copper penny struck at the Philadelphia mint in 1973 was sold for $ 255,000. What was the rate of return on this investment?

A. 6375%

B. 2450%

C. 5000%

D. 5100%

1 Answer

3 votes

Final answer:

The rate of return on the penny investment is 2,549,999,900%, but this is not one of the options provided in the question. The closest match is 5000%, but it appears there may be a typographical error.

Step-by-step explanation:

The question you've asked is related to investment and calculating the rate of return. In 2018, a copper penny from 1973 sold for $255,000. To find the rate of return, we need to compare the sale price to the original value of the penny. The value of a penny in 1973 was $0.01. The rate of return can be calculated using the formula [(Ending value - Beginning value) / Beginning value] × 100. So, the rate of return is [($255,000 - $0.01) / $0.01] × 100, which equals 2,549,999,900%. None of the options (A. 6375%, B. 2450%, C. 5000%, D. 5100%) exactly match this value, suggesting a possible error in the question or answer choices. However, if we look for the closest answer, it would be option C. 5000%, and that is likely the intended answer assuming there is a typographical error in the question or choices.

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