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

Answer 1

P = Po(1+r)^n = 83,190.

r = APR expressed as a decimal.
n = The number of compounding periods.

30,000(1+r)^9 = 83,190.
(1+r)^9 = 83,190/30,000 = 2.773,
9*Log(1+r) = Log2.773,
Log(1+r) = Log2.773/9 = 0.0492,
1+r = 10^(0.0492) = 1.12,
r = 1.12-1 = 0.12 = 12%.