1. You would like to be a millionaire when you retire in 40 years, and how much you must invest today to reach that goal clearly depends on what rate of return you can earn. First, suppose you can earn 11.9% per year, and calculate how much you would have to invest today. Second, suppose you can only earn half that percentage rate, and calculate how much you would have to invest today. Divide the second by the first, to see how many times more you must invest today at half that annual rate grow it to $1 million over 40 years. (Do not round the numbers in intermediate calculations, but enter your answer rounded to 2 decimal places (for example, 2.31).)

Assume a bronze sculpture sold in 2003 at auction for a price of $10,494,040. Unfortunately for the previous owner, he had purchased it in 1999 at a price of $12,138,850.

Required: What was his annual rate of return on this sculpture?(Do not include the percent sign (%). Enter rounded answer as directed, but do not use the rounded numbers in intermediate calculations.Negative amount should be indicated by a minus sign. Round your answer to 2 decimal places (e.g., 32.16).)