SOLUTION: An investment opportunity allowed Osamu to place $15,000 in a mutual fund that was valued at $18,000 after 2 years. To the nearest tenth, what was the annual percent rate of retu

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Question 1043145: An investment opportunity allowed Osamu to place $15,000 in a mutual fund that was valued at $18,000 after 2 years. To the nearest tenth, what was the annual percent rate of return,r,on his investment?
A) 20% B) 17.7% C) 10.9% D) 9.5%
Answer by robertb(5830) About Me  (Show Source):
You can put this solution on YOUR website!
Use A+=+P%281%2Br%2Fn%29%5E%28nt%29, where, in this problem, A = $18,000, P = $15,000,
n = 1, and t = 2.

===> 18000+=+15000%281%2Br%29%5E2,
and you have to solve for r.
===> 1.2+=+%281%2Br%29%5E2 ===> r+=+sqrt%281.2%29-1+=+0.095445,
to five significant figures. Now the answer is clear.