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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 Summary

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

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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 ...

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