document.write( "<A HREF=/cgi-bin/jump-to-question.mpl?question=292600>Question 292600</A>: <I><SPAN STYLE=\"word-break: break-all;\"> Henry invested $12,000 in a new<BR>\n" );
document.write( "restaurant. When the restaurant was sold two years<BR>\n" );
document.write( "later, he received $27,000. Find his average annual<BR>\n" );
document.write( "return by solving the equation 12,000(1  r)2 <BR>\n" );
document.write( "27,000. </SPAN>\n" );
document.write( "</I><HR><TABLE width=100%><TR><TD><B><A HREF=http://www.algebra.com/>Algebra.Com's</A> Answer #211298 by </B><A HREF=/tutors/aboutme.mpl?userid=Theo><B>Theo(13342)</B></A><img src=\"/images/stars/stars-13.gif\" alt=\"\" >&nbsp;<A HREF=/tutors/aboutme.mpl?userid=Theo><IMG SRC=http://www.algebra.com/images/aboutme-small.gif BORDER=0 alt=\"About Me\" VALIGN=MIDDLE></A>&nbsp;<IMG SRC=http://www.algebra.com/cgi-bin/show-face.mpl?user=Theo><BR>You can <A HREF=\"/cgi-bin/embed-solution.mpl?show=1&solution=211298\">put this solution on YOUR website!</A><BR><SPAN STYLE=\"word-break: break-all;\"> F = P * (1+i)^n\r<BR>\n" );
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document.write( "F = 27000<BR>\n" );
document.write( "P = 12000<BR>\n" );
document.write( "i = what you want to find.<BR>\n" );
document.write( "n = 2 years\r<BR>\n" );
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document.write( "Plug your values into this equation to get:\r<BR>\n" );
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document.write( "27000 = 12000 * <IMG STYLE=\"max-width:80%;\" SRC=/cgi-bin/plot-formula.mpl?expression=%281%2Bi%29%5E2 ALIGN=MIDDLE  ALT=\"%281%2Bi%29%5E2\"   DISABLED_style= \"max-width:90%; height:auto;\" >\r<BR>\n" );
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document.write( "Divide both sides of this equation by 12000 to get:\r<BR>\n" );
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document.write( "<IMG STYLE=\"max-width:80%;\" SRC=/cgi-bin/plot-formula.mpl?expression=27000%2F12000 ALIGN=MIDDLE  ALT=\"27000%2F12000\"   DISABLED_style= \"max-width:90%; height:auto;\" > = <IMG STYLE=\"max-width:80%;\" SRC=/cgi-bin/plot-formula.mpl?expression=%281%2Bi%29%5E2 ALIGN=MIDDLE  ALT=\"%281%2Bi%29%5E2\"   DISABLED_style= \"max-width:90%; height:auto;\" >\r<BR>\n" );
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document.write( "Simplify to get:\r<BR>\n" );
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document.write( "2.25 = <IMG STYLE=\"max-width:80%;\" SRC=/cgi-bin/plot-formula.mpl?expression=%281%2Bi%29%5E2 ALIGN=MIDDLE  ALT=\"%281%2Bi%29%5E2\"   DISABLED_style= \"max-width:90%; height:auto;\" >\r<BR>\n" );
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document.write( "Take the square root of both sides of this equation to get:\r<BR>\n" );
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document.write( "<IMG STYLE=\"max-width:80%;\" SRC=/cgi-bin/plot-formula.mpl?expression=sqrt%282.25%29 ALIGN=MIDDLE  ALT=\"sqrt%282.25%29\"   DISABLED_style= \"max-width:90%; height:auto;\" > = 1+i\r<BR>\n" );
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document.write( "Simplify to get:\r<BR>\n" );
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document.write( "1.5 = 1+i\r<BR>\n" );
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document.write( "Subtract 1 from both aides of the equation to get:\r<BR>\n" );
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document.write( "i = .5\r<BR>\n" );
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document.write( "That's a 50% growth rate per year.\r<BR>\n" );
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document.write( "Plug that value into your original equation to get:\r<BR>\n" );
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document.write( "27000 = 12000 * <IMG STYLE=\"max-width:80%;\" SRC=/cgi-bin/plot-formula.mpl?expression=%281%2Bi%29%5E2 ALIGN=MIDDLE  ALT=\"%281%2Bi%29%5E2\"   DISABLED_style= \"max-width:90%; height:auto;\" > becomes:\r<BR>\n" );
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document.write( "27000 = 12000 * <IMG STYLE=\"max-width:80%;\" SRC=/cgi-bin/plot-formula.mpl?expression=%281.5%29%5E2 ALIGN=MIDDLE  ALT=\"%281.5%29%5E2\"   DISABLED_style= \"max-width:90%; height:auto;\" > which becomes:\r<BR>\n" );
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document.write( "27000 = 12000 * 2.25 which becomes:\r<BR>\n" );
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document.write( "27000 = 27000 confirming that the value of .5 interest rate of growth per year is accurate.\r<BR>\n" );
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document.write( "Your answer is that his average annual rate of return is 50%.\r<BR>\n" );
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document.write( " </SPAN>\n" );
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