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?© BrainMass Inc. brainmass.com March 4, 2021, 5:36 pm ad1c9bdddf
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 ...
The solution explains exactly how to make the calculations in Excel including pointing to the functions for future value calculations.