# Rate of return

#### Scicaster

##### New member
Hello,

If I make an investment of $50,000 in a condo and 3 years later sell it for$105,000 what is my annual rate of return? I have already accounted for expenses, capital gain taxes, HOA dues, selling commission, etc. Thanks

Scicaster

#### Subhotosh Khan

##### Super Moderator
Staff member
Hello,

If I make an investment of $50,000 in a condo and 3 years later sell it for$105,000 what is my annual rate of return? I have already accounted for expenses, capital gain taxes, HOA dues, selling commission, etc. Thanks

Scicaster
What is the equation that would give you the improved value of your investment (A) after 'n' years with an yearly interest of 'r'.

Please show us what you have tried and exactly where you are stuck.

Please follow the rules of posting in this forum, as enunciated at:

Sorry, I thought I could just ask a question. I'm thinking $105k-$50k = a profit of $55k divided by 3 years = 18% per year rate of return. #### Subhotosh Khan ##### Super Moderator Staff member Sorry, I thought I could just ask a question. I'm thinking$105k-$50k = a profit of$55k divided by 3 years = 18% per year rate of return.
$$\displaystyle r \ = \ \sqrt{2.1} \ - \ 1$$ = 28.06%