document.write( "Question 169086: 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 \n" ); document.write( "

Algebra.Com's Answer #124699 by checkley77(12844) $\"\"$ $\"About$

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12,000(1+r)^2=27,000
\n" ); document.write( "(1+r)^2=27,000/12,000
\n" ); document.write( "(1+r)^2=2.25
\n" ); document.write( "1+r=sqrt2.25
\n" ); document.write( "1+r=1.5
\n" ); document.write( "5=1.5=1
\n" ); document.write( "r=.5 or 50% annual return on the value of the restraunt.
\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( "12,000*2.25=27,000
\n" ); document.write( "27,000=27,000
\n" ); document.write( " \n" ); document.write( "

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