Question

In March​ 1963, Ironman was first introduced in issue number 39 of Tales of Suspense. The original price for that issue was 12 cents. By March of 2015​, 52 years​ later, the value of this comic book has risen to ​$11 comma 750. What annual rate of interest would you have earned if you had bought the comic in 1963 and sold it in 2015 ​(52 years​ later)?

Answer 1

24.73%

Step-by-step explanation:

(1 + i)ⁿ = future value / present value

annual interest rate = i

n = 52 years

future value = $11,750

present value = $0.12

(1 + i)⁵² = $11,750 / $0.12 = 97,917

1 + i = ⁵²√97,917

1 + i = 1.2473

i = 1.2473 - 1 = 0.2473 = 24.73%