Determining average rate of return on investment


1) Sam purchased some land costing= $49,850. Today that same land is valued at= $83,000. How long has Sam owned this land if price of land has been increasing at 4% per year?

2) 25 years ago, your father invested= $10,000. Today that investment value is =$211,836. Determine the average rate of return your father earned on his investment?

3)  ABC, Inc. is saving money to build the new factory. 6 years ago they save= $250,000 for this purpose. Today, that account is worth $306,958. Determine rate of interest is ABC earning on this money?

4) On your 10th birthday, you got $100 which you invested at 4.5% interest, compounded annually. That investment is now worth $3,000. How old are you today?

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Finance Basics: Determining average rate of return on investment
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