1. Although appealing to more refined tastes, art as a collectible has not always performed so profitably. During 2015, an auction house sold a painting for a price of $1,020,000. Unfortunately for the previous owner, he had purchased it three years earlier at a price of $1,600,000. What was his annual rate of return on this painting?
2. Approximately how many years are needed to double a $500 investment when interest rates are 13.75 percent per year? (Round your answer to 2 decimal places.)