Suppose the first comic book of a classic series was sold in 1954. In 2017, the estimated price for this comic book was $310,000, which is an annual return of 22 percent. For this to be true, what was the original price of the comic book in 1954?a.$1.00b.$.97c.$1.33d.$1.12e.$1.20

Answer :

Answer:

price of the book in 1954 was $1.12

So option (D) will be correct option

Explanation:

We have given price of the book in 2017 is $310000

Annual return = 22 %

We have to find the [rice of book in 1954

So time period between 1954 to 2017 is equal to 63 years

We know that future value is given as [tex]A=P(1+\frac{r}{100})^n[/tex], here A is future value  P is principal value, r is rate of interest and n is time period

So [tex]310000=P\times (1+\frac{22}{100})^{63}[/tex]

[tex]310000=P\times1.22^{63}[/tex]

[tex]310000=P\times275847.67[/tex]

P = $1.12

So price of the book in 1954 was $1.12

So option (D) will be correct option

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