104k views
1 vote
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. None

B. 6375%

C. 625%

D. 6.25%

1 Answer

5 votes

Final answer:

Calculating the rate of return on the penny sold for $255,000 results in a rate of return of 2,549,999,900%, which does not match any of the provided answer options, indicating a possible error in the question or options.

Step-by-step explanation:

The student has asked to calculate the rate of return on an investment involving a copper penny sold for $255,000 in 2018 that was struck at the Philadelphia mint in 1973. The rate of return can be calculated using the formula: Rate of Return = ((Sale Price - Original Price) / Original Price) * 100%. Assuming the original price of the penny was its face value of $0.01 in 1973, the calculation would be (($255,000 - $0.01) / $0.01) * 100%, which equals 2,549,999,900%. However, since none of the provided options (A. None, B. 6375%, C. 625%, D. 6.25%) match this calculation, there seems to be a mistake in the question or the provided answer options.

User Hross
by
8.4k points