document.write( "Question 161291: 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. \n" ); document.write( "

Algebra.Com's Answer #118779 by checkley77(12844) $\"\"$ $\"About$

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12,000(1+r)^2=27,000
\n" ); document.write( "12,000(1+2r+r^2)=27,000
\n" ); document.write( "r^2+2r+1=27,000/12,000
\n" ); document.write( "r^2+2r+1=2.25
\n" ); document.write( "r^2+2r+1-2.25=0
\n" ); document.write( "r^2+2r-1.25=0
\n" ); document.write( "(x+2.50(x-.5)=0
\n" ); document.write( "x-.5=0
\n" ); document.write( "x=.5 or 50% annual return of investment.
\n" ); document.write( "Proof:
\n" ); document.write( "12,000(1+.5)^2=27,000
\n" ); document.write( "12,000(1.5^2)=27,000
\n" ); document.write( "27,000=27,000\r
\n" ); document.write( "\n" ); document.write( " \n" ); document.write( "

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