Cent Superb
PLEASE MATH HELP! COMPOUND INTEREST/PRESENT VALUE STUFF?
Hi, please help me figure this question out,
The 0.50 cents Bluenose is one of Canada’s most famou postage stamps. In 1929, it could be bought at the post office for 0.50 cents. In 2000, a superb copy was sold at an auction for $529.00. What annual interest rate corresponds to an investment for 0.50 cents in 1929 that grows to $529.00 in 2000.
The answer to this question is 10.31%
***** I’m struggling at the part where we have to find this out.
So please tell me how to get this answer step by step
We are learning Present Value & Amount & Compound interest.
Thank you!
2000-1929=71 years
FV=PV(1+i)^t
$529=$0.50(1+i)^71
529/50=(1+i)^71
1058=(1+i)^71
1058^(1/71)=1+i
1.10306=1+i
i=1.10306-1
i=0.10306
i=10.31%
LBZ.TV ’10 SOUTHSIDE REGGIE “PIMPIN SUPERB”