7. An investor buys some land for $40,000 and sells it 12 years later for $115,000. at the time of sale was 26%. Inflation during this time was 4% per year. growth rate of return for this investm...

Question

Question

Answer 1

Answer #1

1.
=(((115000-(115000-40000)*26%)/(40000))^(1/12))/(1+4%)-1=3.3860%

2.
=180000*(1+3.5%)^4*20%*(3%/12)/((1+3%/12)^(12*4)-1)=811.1103056

Answer 2

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