A 1987 advertisement in the New Yorker solicited offers on a 1967 Mercury Cougar XR7 (Motor Trend's 1967 car of the year) that had been stored undriven in a climate controlled environment for 20 years. If the original owner paid $4000 for this car in 1967, what price would he have to receive in 1987 to obtain a 10 percent annual return on his investment?

You can put this solution on YOUR website!

A 1987 advertisement in the New Yorker solicited offers on a 1967 Mercury Cougar XR7 (Motor Trend's 1967 car of the year) that had been stored undriven in a climate controlled environment for 20 years.

If the original owner paid $4000 for this car in 1967, what price would he have to receive in 1987 to obtain a 10 percent annual return on his investment?

If the 10% is compounded yearly the price is as followed.

A(10) = 4000(1+(0.10/1))^(10*1)

---

A(10) = 4000(1.1)^10

---

A(10) = $10,374.97

Cheers,

Stan H.

i do believe its modular luck

explanation: