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