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An investor bought a one-acre lot on the outskirts of a city for $12,700 cash. Each year she paid $175 of property taxes. At the end of 7 years, she sold the lot for a net value of $25,000. What rate of return did she receive on her investment?

An investor bought a one-acre lot on the outskirts of a city for $12,700 cash. Each year she paid $175 of property taxes. At the end of 7 years, she sold the lot for a net value of $25,000. What rate of return did she receive on her investment?

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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An investor bought a one-acre lot on the outskirts of a city for $12,700 cash. Each year she paid $175 of property taxes. At the end of 7 years, she sold the lot for a net value of $25,000. What rate of return did she receive on her investment?
Transcribed Image Text:An investor bought a one-acre lot on the outskirts of a city for $12,700 cash. Each year she paid $175 of property taxes. At the end of 7 years, she sold the lot for a net value of $25,000. What rate of return did she receive on her investment?
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