if you purchased a land by$20,000 and you will sell it after 10 years by $35,000

Finance Feb 22, 2021

if you purchased a land by$20,000 and you will sell it after 10 years by $35,000. Find the annual rate of return from selling your land? Select one: O a. 5.76% O b.7.65% O c. 8.5% O d. 6%

Expert Solution

Return = (Future Value / Present Value )^(1/year) - 1

= (35000 / 20000 )^(1/10) - 1

= 5.76% Answer

The option A is correct.

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