A Condominium Complex Was Purchased by a Group of Private

question 74

Short Answer

A condominium complex was purchased by a group of private investors for $1.3 million and sold 6 year(s) later for $3.8 million. Find the annual rate of return (compounded continuously) on their investment. Round your answer to the nearest hundredth.
​
Annual rate is __________% per year.

---

Definitions:

Incremental Borrowing Rate

The interest rate a company would have to pay if it borrows funds, used as a benchmark in lease agreements to calculate the present value of minimum lease payments.

Balance Sheet

A financial statement that shows a company's assets, liabilities, and shareholders' equity at a specific point in time.

Liability

Financial obligations or debts owed by a business to others, which must be settled over time through the transfer of economic benefits.

Cash Flows

The inflows and outflows of cash and cash equivalents, reflecting the operational, investing, and financing activities of a business.