Homework Help: Finance/Investing

Posted by Amber on Sunday, September 21, 2008 at 8:34pm.

A comic book was purchased for 10 cents in 1948 and is now worth $55 today. What has been the average annual compound rate of return on this item?

I tried to use the formula R=[(y/x)^(1/n)]-1 and I come up with a negative answer. Please help!

Finance/Investing - economyst, Monday, September 22, 2008 at 11:01am
I would say you mis-applied the formula. Your formula is correct. Hint: I get R=0.11089, where y=55, x=0.1, and n=60.

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