A property sold 23 months ago for 5200 per acre It resold to

A property sold 23 months ago for $5,200 per acre. It resold today for $5,900 due to improving farm commodity prices and general market conditions in the area. What is e compound rate of change due to this improved market?

Solution

PV × (1 + r)ⁿ = FV

5200*(1 + r)ⁿ = 5900

n=23/11

r=?

(1 + r)^{^23/11 =} 59/52

r=0.0623/12=0.0052

r=0.52%

hence,answer=A