Although appealing to more refined tastes, art as a collectible has not always performed so profitably. During 2016, a sculpture was sold at auction for a price of $10,319,500. Unfortunately for the previous owner, he had purchased it in 2012 at a price of $12,376,500. What was his annual rate of return on this sculpture?

-4.44%

Explanation:

For this question we have to use the RATE Formula which is shown on the attachment. Kindly find it below:

Data provided in the question

Present value = $12,376,500

Future value or Face value = $10,319,500

PMT = $0

NPER = 2016 years - 2012 years = 4 years

The formula is shown below:  

= Rate(NPER;PMT;-PV;FV;type)  

The present value come in negative  

So, after solving this, the annual rate of return is -4.44%