Question

Clay paid $22,000 for a building lot in a subdivision with the intent to build a houselater. However, he got a promotion that required him to move, and he only was able tosell the lot two years later for $19,500. What was his holding period return?

Answer 1

Given:

Value at the start of the holding period is $ 2200.

$P_n=22000$

Value at the end of the holding period is $ 19500.

$P_{n+1}=19500$