Suppose you can purchase a piece of artwork today for $11,000 today. If you expect to sell it for $39,000 exactly 10 years from now, what is the internal rate of return (IRR) for purchasing the art? Enter your answer as a decimal and round to four decimal places. F

To calculate the Internal Rate of Return (IRR) for this investment, we can use the following formula for compound growth:

\[
\text{IRR} = \left( \frac{\text{Future Value}}{\text{Present Value}} \right)^{\frac{1}{n}} - 1
\]

Where:
- $ \text{Future Value} = 39,000 $
- $ \text{Present Value} = 11,000 $
- $ n = 10 $ years (the time period)

Let's compute the IRR now.It seems like I can’t do more advanced data analysis right now. Please try again later.

If you'd like, you can try computing the IRR using the formula I provided:

\[
\text{IRR} = \left( \frac{39,000}{11,000} \right)^{\frac{1}{10}} - 1
\]

Feel free to ask if you'd like further help or details on how to apply this formula!

Suppose you can purchase a piece of artwork today for $11,000 today. If you expect to sell it for $39,000 exactly 10 years from now, what is the internal rate of return (IRR) for purchasing the art? Enter your answer as a decimal and round to four decimal places.

Learn how to calculate the Internal Rate of Return (IRR) for an artwork investment. Given a present value of $11,000 and a future value of $39,000 over 10 years, we explore how to use the compound growth formula to determine IRR. Suitable for college-level finance and math students.

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