document.write( "Question 214812: Henry invested $12,000 in a new restaurant. When the restaurant sold two years later, he received $27,000. Find his average annual return by solving the equation 12,000(I +r)^2= 27,000. \n" ); document.write( "

Algebra.Com's Answer #162288 by checkley77(12844) $\"\"$ $\"About$

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12,000(I +r)^2= 27,000.
\n" ); document.write( "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( "r=1.5-1
\n" ); document.write( "r=.5 or 50% is the annual increase in value.
\n" ); document.write( " \n" ); document.write( "

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