(adsbygoogle = window.adsbygoogle || []).push({}); 1. The problem statement, all variables and given/known data

In 1903, a Picasso painting was purchased for $600. The family of the original owner sold the painting in 1995 for $29,152,000. What rate of return (interest) did the family receive on the investment?

2. Relevant equations

Single Payment Compound Interest Formula:

F = P(1+i)^{n}

where,

F= a future some of money (future value)

P= a present sum of money

n= number of interest periods

i = interest rate per interest period.

3. The attempt at a solution

solve for i:

F = P(1+i)^{n}

F/P = (1+i)^{n}

log(F/P) = n log (1+i)

This is as far as I get. I know that n log (1+i) does not equal n log 1 + n log i, but I don't know what to do to isolate the i. I can't just divide both sides by n log because there is no such thing as n log. I thought about moving n log (1+i) to the left side and setting the equation to zero, but I didn't get anywhere with that either.

**Physics Forums | Science Articles, Homework Help, Discussion**

Join Physics Forums Today!

The friendliest, high quality science and math community on the planet! Everyone who loves science is here!

The friendliest, high quality science and math community on the planet! Everyone who loves science is here!

# Homework Help: Rate of return with logs [engineering economics]

**Physics Forums | Science Articles, Homework Help, Discussion**