Suppose that 2 years ago you bought an old record player at a yard sale for $10. You saw today on E-bay that the same record player is selling for $79.99. If you were to sell the record play at that price today, what would be the implied return percentage?

182.8%

Explanation:

Since i have purchased the old record player 2 years ago at the price of $10 which is now selling for the price of the $79.99, the implied percentage in this case shall be determined as follows:

Future value=Present value (1+return percentage) ^2

In the given question

Future value=$79.99

Present value = Price of old record player two year ago=$10

$79.99=$10 (1+return percentage) ^2

$7.999 = (1+return percentage) ^2

Taking square root on both sides

2.828=1+return percentage

2.828-1=Return percentage

Return percentage=1.828 or 182.8%