I invested $600,000 in a cattle ranch and I sold that ranch for $1,800,000 ten years later. What was my annual percentage rate return? What is the APR?
I invested $600,000 in a cattle ranch and I sold that ranch for $1,800,000 ten years later. What was my annual percentage rate return? What is the APR?
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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![**Investment and APR Calculation**
I invested $600,000 in a cattle ranch and sold that ranch for $1,800,000 ten years later. What was my annual percentage rate (APR) return?
**Calculating the APR:**
- **PV (Present Value):**
- **FV (Future Value):**
- **N (Number of Years):** 10 years
- **Interest Rate:** ? per year
**APR Formula:**
The formula for APR is given by:
\[ \text{APR} = \text{periodic rate} \times m \]
- **Periodic Rate:** 0.00%
- **m:**
- **APR:**
In this calculation, we determine the APR by finding the periodic rate and then multiplying by the number of compounding periods per year. Further financial computations would be needed to fill in the missing values and complete the APR calculation.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F69566391-329e-4866-89eb-afe8b6c4c18f%2F63a2b3a9-56f8-413f-852c-74cd69037b9a%2Fmohjucf_processed.png&w=3840&q=75)
Transcribed Image Text:**Investment and APR Calculation**
I invested $600,000 in a cattle ranch and sold that ranch for $1,800,000 ten years later. What was my annual percentage rate (APR) return?
**Calculating the APR:**
- **PV (Present Value):**
- **FV (Future Value):**
- **N (Number of Years):** 10 years
- **Interest Rate:** ? per year
**APR Formula:**
The formula for APR is given by:
\[ \text{APR} = \text{periodic rate} \times m \]
- **Periodic Rate:** 0.00%
- **m:**
- **APR:**
In this calculation, we determine the APR by finding the periodic rate and then multiplying by the number of compounding periods per year. Further financial computations would be needed to fill in the missing values and complete the APR calculation.
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