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Finance Assignment | Professional Writing

Author:
June 10th, 2020

(Solving for i) Steve Smith purchased a wooden statue of a Conquistador for $7,400 to put in his home office 7 years ago. Steve has recently​ married, and his home office is being converted into a sewing room. His new​ wife, who has far better taste than​ Steve, thinks the Conquistador is hideous and must go immediately.

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Steve decided to sell it on​ e-Bay and only received $4,900 for it, and so he took a loss on the investment. What was his rate of​ return, that​ is, the value of i?

What was Steve’s rate of​ return, that​ is, the value of i? Enter a negative percentage for a loss.

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