A coin that was featured in a famous novel sold at auction in 2014 for $9,179,00

Question

A coin that was featured in a famous novel sold at auction in 2014 for $9,179,000. The coin had a face value of $20 when it was issued in 1793 and had previously been sold for $220,000 in 1970

At what annual rate did the coin appreciate from its first minting to the 1970 sale? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.)

What annual rate did the 1970 buyer earn on his purchase? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.)

At what annual rate did the coin appreciate from its first minting to the 2014 sale? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.)

A coin that was featured in a famous novel sold at auction in 2014 for $9,179,000. The coin had a face value of $20 when it was issued in 1793 and had previously been sold for $220,000 in 1970

Explanation / Answer

Annual rate of appreciation from 1793 to 1970 = [($220,000 / $20)1/(1970-1793) - 1] * 100%

= 5.40%

Annual rate of appreciation for the 1970 buyer = [($9,179,000 / $220,000)1/(2014-1970) - 1] * 100%

= 8.85%

Annual rate of appreciation from 1793 to = [($9,179,000 / $20)1/(2014-1793) - 1] * 100%

= 6.08%

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