Lance Murdock purchased a wooden statue of a Conquistador for $7,700 to put in his home office 8 years ago. Lance has recentlymarried, and his home office is being converted into a sewing room. His newwife, who has far better taste thanLance, thinks the Conquistador is hideous and must go immediately. Lance decided to sell it one-Bay and only received $4,900 forit, and so he took a loss on the investment.

What was his rate ofreturn, thatis, the value of i?