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    Calculating the return on an investment for 1949 Vincent Black Shadow motorcycle using Excel FV functions

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    A 1949 Vincent Black Shadow Series V motorcycle sold for about $45,000 in 1996. If you were fortunate enough to have purchased one new for $630 in 1949, what return did you earn on your investment?

    If the value of a $20,000 1998 Bimota Supermono appreciates at the same rate, what will it be worth in another 47 years?

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    Solution Preview

    Refer to the attachment.

    So, r = 1.095 - 1 = 0.095 = 9.5%
    So, the return in your investment is 45,000 - 630 = 44,370 in after 47 ...

    Solution Summary

    The solution explains exactly how to make the calculations in Excel including pointing to the functions for future value calculations.