00:01
Hello, students, we are asked in the question, you purchased a piece of property at this much amount.
00:07
Six years ago, you can sell the property at this much amount.
00:11
What is the rate of return on real estate investment, right? so we are not mentioned here what we need to find annual rate or return or overall rate of return, right? so here we need to consider it whole.
00:28
So we can write here what is rate of return? rate of return can be written as investment gain divided by if i write for this investment gain divided by initial amount invested.
00:56
Right.
01:00
So if i write here for this, what would be our investment gain? so investment gain would be $650 -3500 -0 minus 4 -50 -3 -0, right? so basically, so this will come out as dollars to double -0 and triple -0, right? or as percentage value we can also multiply by 800 and as ratio we can exclude 100.
01:42
So basically what is our rate of return in this case? so it is 2 double zero triple zero divided by 4 5 4 times 0 multiplied by 100...