From: Ray Summerton
Investors talk about long term capital gains being say 10% a year over 7years, doubling the value of a property. Can you mathematicians out there tell me how you work capital gains backwards? I.E. Suppose I bought a house for $50k back in 1978 and it is now valued at 200k. What is the CG achieved taking into account compounding interest? Or is this only for top notch accountants, or do you just divide the gain by the number of years and get an average?
Please enlighten me.
Regards Ray
Investors talk about long term capital gains being say 10% a year over 7years, doubling the value of a property. Can you mathematicians out there tell me how you work capital gains backwards? I.E. Suppose I bought a house for $50k back in 1978 and it is now valued at 200k. What is the CG achieved taking into account compounding interest? Or is this only for top notch accountants, or do you just divide the gain by the number of years and get an average?
Please enlighten me.
Regards Ray
Last edited by a moderator: