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27 October, 01:52

Suppose that in 2015, a $10 silver certificate from 1898 sold for $11,700. For this to have been true, what would the annual increase in the value of the certificate have been?

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  1. 27 October, 04:00
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    The annual increase in the value of the certificate would have been 6.22 percent

    Explanation:

    From the provided data we have,

    Worth of the silver certificate in 1898 equal to $10

    Price sold for the silver certificate in 2015 equal to $11,700

    To determine what would the annual increase in the value of the certificate have been;

    Price sold = original price * (1 + r) (initial year bought - year sold)

    $11,700 = $10 * (1 + r) (2015 - 1898)

    r = 6.22 percent
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