You acquire land for $100,000 and sell it after five years for $150,000.

a) What was the annual rate of appreciation in the value of the land?

b) Each year you paid $2,000 in property tax, $300 for liability insurance, and $700 for upkeep (e.g., mowing). What was the true annualized return on the investment?

c) If there was also a 5 percent commission on the sale, what was the annualized return on the investment?