If Karen bought a house for $90,000.00 in January 2006 and sold it for $192,000.00 in...

Question

Question

If Karen bought a house for $90,000.00 in January 2006 and sold it for $192,000.00 in January 2016, what was her rate of return on the investment?

business finance

Answer 1

Answer #1

Rate of return = (FV / PV)^1/t - 1

Rate of return = ($192,000.00 / $90,000.00)^1/10 - 1

Rate of return = 0.0787 or 7.87%

Answer 2

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