You Purchased a Piece of Property for $30,000 Nine Years

question 103

Multiple Choice

You purchased a piece of property for $30,000 nine years ago and sold it today for $83,190.What was your rate of return on your investment?

• A)12%
• B)11%
• C)10%
• D)9%

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Definitions:

Consumer Price Index

An index that measures the change over time in the price of a basket of consumer goods and services, often used as a measure of inflation.

Real Wages

Wages adjusted for inflation, representing the purchasing power of income earned through work.

Base Year

A specific year chosen as a point of reference for comparison over time in economic analysis.

CPI (Consumer Price Index)

An index that measures the average change over time in the prices paid by urban consumers for a market basket of consumer goods and services.