SOLUTION: Josh 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 ->  Algebra  -> Customizable Word Problem Solvers  -> Finance -> SOLUTION: Josh 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      Log On

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Question 205137This question is from textbook Elementary and Intermediate Algebra
: Josh 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%2C000%281+%2B+r%29%5E2+=+27%2C000 This question is from textbook Elementary and Intermediate Algebra

Answer by Alan3354(21603) About Me  (Show Source):
You can put this solution on YOUR website!
12000%281+%2B+r%29%5E2+=+27000
Solve for r.
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(1+r)^2 = 27000/12000 = 2.25
1+r = 1.5
r = 0.5 = 50%