1. You purchased a piece of art 7 years ago for $7,600 with the hope it would increase in value. Your new spouse dislikes the art and you have decided to sell it today. Unfortunately, the best offer you received was $5,200, losing money on your investment. What was your annual rate of return?

2. You are offered $100,000 today or $350,000 in 13 years. Assuming you can earn 9% on your money, which offer should you choose?

Answer rating: 100% (QA)

1 To calculate the annual rate of return we need to use the following formula Annual rate of return ... View the full answer