SOLUTION: . Henry invested $12,000 in a new restaurant. When the restaurant was sold two years later, he received $27,000. Find his average annual return by solving the equation 12,000(1 +

SOLUTION: . Henry invested $12,000 in a new restaurant. When the restaurant was sold two years later, he received $27,000. Find his average annual return by solving the equation 12,000(1 +

Algebra.Com

Question 269844: . Henry invested $12,000 in a new restaurant. When the restaurant was sold two years
later, he received $27,000. Find his average annual return by solving the equation 12,000(1 + r)^2 =
27,000.

Answer by checkley77(12844) (Show Source): You can put this solution on YOUR website!
12,000(1+r)^2=27,000.
(1+r)^2=27,000/12,000
(1+r)^2=2.25 take the sqrt of both sides.
1+r=1.5
r=1.5-1
r=.5 or 50% annual return.
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