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

Please show us what you have tried and

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- Joined
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In a previous post, you had indicated that you and your husband are recent retiree (like me) - and NOT working this problem for any class. So I am going to give the answer. If the interest rate is 'r (%)' and if you consider compounding: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.

\(\displaystyle r \ = \ \sqrt[3]{2.1} \ - \ 1\) = 28.06%

Rule of 72 tells me that I am most probably correct.