A famous painting was sold in 1947 for $21 comma 320. In 1998 the painting was sold for $32.1 million. What rate of interest compounded continuously did this investment earn?

Answer: 15.42%

Explanation: PV (present value) = $21,320

FV (Future Value) = $ 32.1 million.

Years (y) = 1947-1998 = 51years

r = (FV/PV) ^ (1/y) - 1

r = ($32,100,000 / $21,320) ^ (1/51) - 1

r = ($1505.6285) ^ (0.0196) - 1

r = 1.15421 - 1

r = 0.0154205 X 100%

r = 15.42%