A Condominium Complex Was Purchased by a Group of Private

question 175

Multiple Choice

A condominium complex was purchased by a group of private investors for $1.5 million and sold 5 year(s) later for $3.7 million. Find the annual rate of return (compounded continuously) on their investment.

• A) 18.06%
• B) 18.47%
• C) 18.90%
• D) 18.19%

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Definitions:

Out-Of-Pocket Costs

Expenses that are paid directly out of one’s finances and are not reimbursed.

Copayments

A fixed amount paid by a patient each time a medical service is accessed, with the remainder covered by health insurance.

Deductibles

Deductibles are the amount an insurance policyholder must pay out-of-pocket before the insurance coverage begins to pay for covered losses.

Out-Of-Pocket

Expenses that are paid directly in cash or cash equivalents during a transaction, without any form of credit.