00:01
Okay, so there's this business, and it was purchased in 2010 for $650 ,000.
00:10
And then they sold it in 2013, and it sold for $850 ,000.
00:18
And i want to know what the annual rate of return is for this investment.
00:23
So i'm going to use this formula that a equals p times one plus all.
00:33
R over n to the n t.
00:39
So my a is my ending amount are how much it's sold for.
00:43
So $850 ,000.
00:49
P is how much i bought it for my beginning amount.
00:54
So $650 ,000.
01:00
And then one plus my rate is what i'm looking for.
01:07
And then if i want annual, it's going to be compounded, for years so the end's going to be one.
01:15
If it was bought in 2010 and sold in 2013, that's three years.
01:24
So now my goal is to get r by itself...