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16 April, 01:42

In September 1963, the first issue of the comic book X-MEN was issued. The original price for that issue was $0.14. By September 2021 , 58 years later, the value of the near-mint copy of this comic book has risen to $55 comma 700. What annual rate of interest would you have earned if you had bought the comic in 1963 and sold it in 2021

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  1. 16 April, 02:07
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    24.9%

    Explanation:

    In this question, we are asked to calculate the annual that would have been earned if a comic book bought in 1963 is sold in 2021.

    We proceed as follows:

    Price of comic book in 1963 = $0.14 or 14 cents

    Price of comic book in 2021 = $55,700

    The investment period = 58 years

    We represent the rate of interest earned by buying the book in 1963 and selling in 2021 as r.

    The Total amount A = P (1+r) ^n

    55,700 = 0.14 (1+r) ^58

    397,867 = (1+r) ^58

    By computation,

    1+r = 1.249

    r = 0.249

    This means that the rate of interest earned is 24.9%
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