Answered: I invested $600,000 in a cattle ranch…

I invested $600,000 in a cattle ranch and I sold that ranch for $1,800,000 ten years later. What was my annual percentage rate return? What is the APR?

Financial Accounting Intro Concepts Meth/Uses

14th Edition

ISBN:9781285595047

Author:Weil

Publisher:Weil

ChapterA: Appendix - Time Value Of Cash Flows: Compound Interest Concepts And Applications

Section: Chapter Questions

Problem 11E

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Concept explainers

Mortgages

A mortgage is a formal agreement in which a bank or other financial institution lends cash at interest in return for assuming the title to the debtor's property, on the condition that the obligation is paid in full.

Mortgage

The term "mortgage" is a type of loan that a borrower takes to maintain his house or any form of assets and he agrees to return the amount in a particular period of time to the lender usually in a series of regular equally monthly, quarterly, or half-yearly payments.

Question

Help!9

I invested $600,000 in a cattle ranch and I sold that ranch for $1,800,000 ten years later. What
was my annual percentage rate return?
What is the APR?
PV
FV
N
Interest Rate?
APR = periodic rate x m
periodic rate
m
APR
0.00%
years
per year

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