Howard Stark invented the “Hover Car” which was selling for $2,500 in 1943. In 2018, a...

Howard Stark invented the “Hover Car” which was selling for $2,500 in 1943. In 2018, a mint-condition car was selling for approximately $950,000. What average annual rate of return would a seller realize if she had been the original purchaser of this ‘investment in 1943?

Select one:

A. 9.32%

B. 8.76%

C. 8.24%

D. 5.05%

E. 9.18%

Solutions

Expert Solution

Time Period = 75 years

Annual Percentage Rate of Return = (950,000/2,500)^(1/75) - 1

Annual Percentage Rate of Return = 8.24%

jeff jeffy answered 2 years ago

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