THE SCENARIO
When investing, it's important to plan ahead. And when planning, it's critical to know how to estimate what your returns will (might) be. In order to estimate properly, you need to have a feel for how the investments you've done in the past have worked out, as similarities to past investments can give clues as to how future investments might work out.
Also, as with all investing, time is important. If your investment doubled over the course of a decade, that would be a very different story than if it doubled in a year.
Four years and seven months ago, I bought a condo to live in. I paid $350,000 for the condo (using a bank loan, of course). Today, the condo is thought to be worth* $430,000.
The question: What is the annualized rate of appreciation on my condo since I bought it?
* I use the term 't...
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