Question

Although appealing to more refined tastes, art as a collectible has not always performed so profitably. During 2015, an auction house sold a painting for a price of $1,180,000. Unfortunately for the previous owner, he had purchased it three years earlier at a price of $1,760,000. What was his annual rate of return on this painting?

Answer 1

≅-12.48

Step-by-step explanation:

During 2015,$1,180,000 sales was made

3 years earlier, the previous owner would had purchased it at a price of $1,760,000

Annual rate of return on this painting

=
`\sqrt[1/3]{Final Value/Starting Value - 1}\\\sqrt[1/3]{1,180,000/1,760,000 - 1}`

≅-12.48