(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.

1. The problem statement, all variables and given/known data

2. Relevant equations

3. The attempt at a solution

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# Homework Help: Rate of return witrh logs

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