document.write( "Question 881280: I need ur urgent help on this finance question.\r
\n" ); document.write( "\n" ); document.write( "an investor expects the value of a $1000 investment to triple within 12 years. what is the expected annual rate of growth in the investment \n" ); document.write( "
Algebra.Com's Answer #532086 by josmiceli(19441)\"\" \"About 
You can put this solution on YOUR website!
Initial investment = $1,000
\n" ); document.write( "In 12 years the investment becomes $3,000
\n" ); document.write( "\"+3000+=+1000%2A%28+1+%2B+r+%29%5E12+\"
\n" ); document.write( "where \"+r+\" is the annual rate of return
\n" ); document.write( "\"+3+=+%28+1+%2B+r+%29%5E12+\"
\n" ); document.write( "Take the log of both sides
\n" ); document.write( "\"+log%283%29+=+12%2Alog%28%28+1+%2B+r+%29%29+\"
\n" ); document.write( "\"+.477121+=+12%2Alog%28%28+1+%2B+r+%29%29+\"
\n" ); document.write( "\"+log%28%28+1+%2B+r+%29%29+=+.03976+\"
\n" ); document.write( "\"+10%5E.03976+=+1+%2B+r+\"
\n" ); document.write( "\"+1.09587+=+1+%2B+r+\"
\n" ); document.write( "\"+r+=+.09587+\"
\n" ); document.write( "The annual percentage rate is 9.59%
\n" ); document.write( "check:
\n" ); document.write( "\"+3000+=+1000%2A%28+1+%2B+r+%29%5E12+\"
\n" ); document.write( "\"+3+=+1.09587%5E12+\"
\n" ); document.write( "\"+3+=+2.99991+\"
\n" ); document.write( "looks close enough
\n" ); document.write( " \n" ); document.write( "
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