You invested $70,000 in a piece of real estate four years ago. Today it is worth $100,000. What is the annualized rate of return on this investment, rounded to the nearest tenth of a percent?
A)9.3%
B)7.5%
C)10.7%
D)none of the above

Question

Quizplus · Accepted Answer

The annualized rate of return can be calculated using the formula: [(Final Value / Initial Value)^(1/Number of Years)] - 1. Plugging in the values: [(100,000 / 70,000)^(1/4)] - 1 = 0.093 or 9.3%.

You Invested $70,000 in a Piece of Real Estate Four