You purchased a new sports car 40 years ago at a cost of $5,167.55. Today, you sold that car for $97,500. What annual rate of return did you earn on the vehicle?

Question

Ronald

Mathematics

12 December, 08:50

You purchased a new sports car 40 years ago at a cost of $5,167.55. Today, you sold that car for $97,500. What annual rate of return did you earn on the vehicle?

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Kaia Atkinson · Answer 1

Based on the given values above, if you purchase a new sports car 40 years ago at a cost of $5,167.55 and sold it for $97,500, this would mean that the annual rate of return you earned on the vehicle is 5%. Hope this answers your question. Have a great day!