Suppose the first comic book of a classic series was sold in 1954. In 2017, the estimated price for this comic book was $310,000, which is an annual return of 22 percent. For this to be true, what was the original price of the comic book in 1954?
A) $1.00
B) $.97
C) $1.33
D) $1.12
E) $1.20

Question

Quizplus · Accepted Answer

The original price of the comic book can be calculated using the formula:Original price = Estimated price / (1 + annual return)^number of yearsIn this case, the estimated price is $310,000, the annual return is 22%, and the number of years is 2017 - 1954 = 63.Plugging these values into the formula, we get:Original price = $310,000 / (1 + 0.22)^63 = $1.12

Suppose the First Comic Book of a Classic Series Was