Question

Suppose that in 2015, a $10 silver certificate from 1898 sold for $11,700. For this to have been true, what would the annual increase in the value of the certificate have been?

A. 6.22%
B. 6.01%
C. 7.23%
D. 6.49%
E. 7.07%

Answer 1

The annual increase in the value of the $10 silver certificate would be 116,900%.

Step-by-step explanation:

To calculate the annual increase in value of the $10 silver certificate, we need to find the percentage increase. The formula to calculate the percentage increase is:

Percentage increase = [(Final value - Initial value) / Initial value] x 100

Using the given information, the initial value of the silver certificate is $10 and the final value is $11,700. Plugging these values into the formula, we get:

Percentage increase = [(11,700 - 10) / 10] x 100

Simplifying this equation, we get:

Percentage increase = 116,900%

Therefore, the annual increase in the value of the certificate would be 116,900%.