Comic books have recently grown in popularity among collectors. Spiderman, who first appeared in Amazing Fantasy No. 15, is an extremely popular superhero. The comic book sold in August 1963 at a cover price of 12 cents. In 2011, a copy of this issue had mutated
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Comic books have recently grown in popularity among collectors. Spiderman, who first appeared in Amazing Fantasy No. 15, is an extremely popular superhero. The comic book sold in August 1963 at a cover price of 12 cents. In 2011, a copy of this issue had mutated to a price of $1.1 million at auction, the first Marvel Comics superhero to hit the million dollar mark. This seems like a very high return to the untrained eye, and indeed it is! How much is the percent return per year compounded annually? Assume number of periods is 48 years.
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- Although appealing to more refined tastes, art as a collectible has not always performed so profitably. During 2003, Sotheby’s sold the Edgar Degas bronze sculpture Petite Danseuse de Quatorze Ans at auction for a price of $9.63 million. Unfortunately for the previous owner, he had purchased it in 1999 at a price of $12.84 million. What was his annual rate of return on this sculpture?Although appealing to more refined tastes, art as a collectible has not always performed so profitably. During 2003, Sotheby’s sold the Edgar Degas bronze sculpture Petite Danseuse de Quatorze Ans at auction for a price of $10,311,500. Unfortunately for the previous owner, he had purchased it in 1999 at a price of $12,377,500. What was his annual rate of return (percentage) on this sculpture?Although appealing to more refined tastes, art as a collectible has not always performed so profitably. During 2003, Sotheby’s sold the Edgar Degas bronze sculpture Petite Danseuse de Quatorze Ans at auction for a price of $10,371,500. Unfortunately for the previous owner, he had purchased it in 1999 at a price of $12,497,500. What was his annual rate of return on this sculpture
- Although appealing to more refined tastes, art as a collectible has not always performed profitability. During 2003, Sotheby’s sold the Edgar Degas bronze sculpture Petite Danseuse de Quatorze Ans at auction for a price of $10,311,500. Unfortunately for the previous owner, he had purchased it in 1999 at a price of $12,377,500. What was his annual rate of return on the sculpture?Although appealing to more refined tastes, art as a collectible has not always performed so profitably. During 2003, Sotheby’s sold the Edgar Degas bronze sculpture Petite Danseuse de Quatorze Ans at auction for a price of $9.86 million. Unfortunately for the previous owner, he had purchased it in 1999 at a price of $12.56 million. What was his annual rate of return on this sculpture? (A negative answer should be indicated by a minus sign. Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.)Owing to the rising cost of copper, in 1982 the U.S. Mint changed the composition of pennies from 95% copper (and 5% zinc) to copper (and 97.5% zinc) 2.5% to save money. Your favorite aunt has a collection of 5,000 pennies minted before 1982, and she intends on gifting the collection to you. Solve, a. What is the collection’s value based on metal content alone? Copper sells for $3.50 per pound and zinc for $1 per pound. It takes approximately 130 pre-1982 pennies to add up to one pound of total weight. b. If it cost the U.S. Mint $0.017 to produce a penny in 2012, is it time to eliminate pennies and round off all financial transactions to the nearest 5 cents (nickel)? As a matter of interest, it cost the government almost 10 cents to produce a nickel in 2012.
- What is the yield on an "old masters" painting of Elvis Presley (acrylic on velvet) that sells for $1,540,000 today and is expected to be sold at aSotheby's auction in 2 years for $1,970,000?A short article in the January 10, 2011 edition of The New York Times discussed the amount spent on DVDs over the past six years: (In 2004) consumers spent about $21.8billion to rent and and buy DVDs, Blu-ray discs, digital downloads and other forms of home entertainment...The number has fallen every year since, for a total drop of about 13.8 percent, to $18.8 billion in 2010. The reporter noted that the actual drop was about double what it seemed to be when the figures were adjusted for inflation: $21.8 billion figure from 2004 would amount to $25.3billion in current dollars. If we adjust for inflation, how dramatic is the drop in spending over the six year period?Businesswire.com reported a shortage of inventory for new and used cars during the pandemic mainly due to mass transit riders choosing to purchase a vehicle for safer transportation coupled with the ease of the transformed digital buying process along with supply chain disruptions. New vehicle sales doubled during the pandemic pushing the average price of both new and used vehicles up to an estimated $39,500 in 2021. If a new car loses 20% of its value the first year and 15% annually until year 10 when it is worth 10% of its original cost, what will the estimated value of your $45,680 business vehicle be in year 4? If using the declining-balance method, what is the depreciation expense for year 4 with an estimated life of 5 years and residual value of $19,000?
- You were reminiscing about the good old days in 1990 when you could buy an ice cream cone at Amy's in Austin, TX for $2.00 which today costs $4.00. The CPI in 1990 was 130.7 and in 2015 it was 237. Has Amy raised the price of her ice cream faster than inflation? Explain.Two years ago the manager of a large department store purchased new bar code scanners costing $39,000. A salesperson recently tried to sell the manager a new computer-integrated checkout system for the store. Thenew system would save the store a substantial amount of money each year. The recently purchased scanners could be sold in the secondhand market for $19,000. The store manager refused to listen to the salesperson,saying, “I just bought those scanners. I can’t get rid of them until I get my money’s worth out of them.” (a) What type of cost is the cost of purchasing the old bar code scanners? (b) What common behavioral tendencyis the manager exhibiting?The Diagonal Stamp Company, which sells used postage stamps to collectors, advertises that its average price has increased from $1 to $9 in the last 10 years. Thus, management states, investors who had purchased stamps from Diagonal 10 years ago would have received a 100% rate of return each year. What is the annual rate of return?
