An inversor buys company shares for 拢100,000 after 3 years the land is sold for 拢300,000,?

what is the annual rate on this investment?
if the annual rate of inflation has been 10 percent over this period,what has been the real rate of return on the investment

Bought Price = $100,000
Sold Price = $300,000
inflation = 10% for 3 years

Total Return = (Sold Price - Bought Price) / Bought Price
= ($300,000 - $100,000) / $100,000
= $200,000 / $100,000
= 200% for 3 years

Real total return with inflation = 200% - 10% = 190% per year

Annual Return after inflation = 190% / 3 years = 63.3% per year

of course you have not counted in taxes, Gains tax ect.......

3 rt (3/1)= 1.443
=44.2%
- 10% inflation
=34.2%
Note that if your teacher does it the Excel way, he will get 56.7% after inflation which is wrong.

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