A Condominium Complex Was Purchased by a Group of Private

question 232

Short Answer

A condominium complex was purchased by a group of private investors for $1.4 million and sold 4 year(s) later for $3.1 million. Find the annual rate of return (compounded continuously) on their investment. Round your answer to the nearest hundredth.
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__________%

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Definitions:

Credit Sales

Sales made by a business where the customer purchases goods or services on credit and payment is received at a later date.

Finished Goods Inventory

The stock of completed products that are ready for sale but have not yet been sold.

Variable Manufacturing Overhead

Costs that vary with the level of production, such as utilities for manufacturing premises and wages for hourly production workers.

Finished Goods Inventory

Finished goods awaiting purchase that have not been sold to consumers yet.