Answer:
79.5%.
Explanation:
Rate of return = [tex]\frac{final value - initial value}{initial value}[/tex] x 100
The cost of the acre = $12700.
Total property taxes paid for 7 years = $175 x 7
                               = $1225
Net value of cost = $12700 + $1225
               = $13925
Net value of the land when sold = $25000
∴ Rate of return = [tex]\frac{25000 - 13925}{13925}[/tex] x 100
             = 0.7953 x 100
             = 79.53%
The rate of return of the acre of land is 79.5%.
