SOLUTION: Michael purchased a Wayne Gretzkey rookie card for $3.50 in 1985. In 2008 the card is worth $58.19. What is the annual rate of appreciation??? I think it is 1.3%. Can someone pleas

Question 129565: Michael purchased a Wayne Gretzkey rookie card for $3.50 in 1985. In 2008 the card is worth $58.19. What is the annual rate of appreciation??? I think it is 1.3%. Can someone please help me ???
Answer by scott8148(6628) (Show Source): You can put this solution on YOUR website!
your decimal point is in the wrong place

(present value)=(starting value)(1+((percent appreciation)/100))^(time)

let x="%/100" __ 58.19=3.5(1+x)^23

dividing by 3.5 and taking log __ log(58.19/3.5)=(23)log(1+x)

dividing by 23 __ (log(58.19/3.5))/23=log(1+x)

taking antilog and subtracting 1 __ 10^((log(58.19/3.5))/23)-1=x
RELATED QUESTIONS
Michael purchased a Wayne Gretzkey rookie card for $3.50 in 1985. In 2008 the card is... (answered by oscargut)

A $50 baseball card is worth $400 in 5 year time. What is the rate of... (answered by Alan3354)

A silver coin was purchased for $430 in 1985.The market value for silver declined to the... (answered by stanbon)

Scott has $30 to buy new baseball cards for his collection. He has chosen a Greg Maddux... (answered by jorel1380)

A math professor purchased a condominium, for $60,000 in 1977. The real estate agent said (answered by stanbon)

according to an estimate, 50% of the people in the united states have at least one credit (answered by reviewermath)

What is the solution. A collector of football trading cards pay $6 for a card several... (answered by vleith)

A piece of sculpture is purchased for $3000 in 1960. In 2008,the sculpture is valued at... (answered by checkley71)

Select a card from the partial deck. What is the probability that the card will... (answered by checkley71)