You bought your home seven years ago for $245,000 with a fixed interest rate mortgage loan with an initial balance of $220,000. Assuming you sell your home for $276,000, what do you estimate for the unleveraged before tax IRR? Use annual compounding or discounting to solve this problem.

a) 1.78%

b) 20.64%

c) 3.29%

d) 40.93%