SOLUTION: This is the question I'm having problems with... Suppose P dollars in principal is invested in an account that earns interest annually. If after t years the investment grows to A

Question 135290: This is the question I'm having problems with...
Suppose P dollars in principal is invested in an account that earns interest annually. If after t years the investment grows to A dollars, then the annual rate of return, r, on the investment is given by
r = A/P^1/t -1
Find the annual rate of return on $7,000 which grew to $12,200 after 5 years.
Round your answer to one decimal place.
I filled in the equation with:
r= 12200/7000^1/5 -1
I cancelled out the zeros to get r=122/70^1/5 -1
I'm unsure where to go from here. Thanks.
Answer by vleith(2983) (Show Source): You can put this solution on YOUR website!
You've done all the hard work. Nice job.

So r = 11.75%, that's a nice return

RELATED QUESTIONS
Suppose that P dollars in principal is invested in an account that earns compound... (answered by Theo)

Suppose that an account earns 5.7% interest and after 2 years the balance is $2228. Find... (answered by ankor@dixie-net.com)

Suppose $1000 is invested in an account that earns 7% interest compounded annually. How... (answered by Fombitz)

Suppose $1000 is invested in an account that earns 7% interest compounded annually. How... (answered by Fombitz,solver91311)

Using the formula B=P+Prt Suppose an account earns 5.5% interest and after two years the (answered by stanbon)

Hello, I need help with a simple interest financial question. Alex deposits a sum of... (answered by josmiceli)

If P dollars invested in an account that earns interest at 7% compounded annually the... (answered by Theo)

Suppose that $2600 is initially invested in an account with an APR of 3.3% compounded... (answered by stanbon)