You Purchase a Condominium After Graduation from College

question 13

Short Answer

You purchase a condominium after graduation from college. Each year the assessed value of the condominium increases by 5%. After five years, what is the total percentage increase on the assessed value of the condominium? Give your answer as a percentage rounded to the nearest tenth of a percent.

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Definitions:

Return on Investment

A measure of the profitability of an investment, calculated as the net profit of the investment divided by its cost.

Net Profit

Represents the amount of money a company retains after subtracting all its expenses, taxes, and costs from its total revenue.

Net Income

represents the total earnings of a company after deducting all expenses and taxes from total revenue.

Return on Investment

The gain or loss generated on an investment relative to the amount of money invested.