SOLUTION: 96) Ventura Capital. 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

Algebra ->  Triangles -> SOLUTION: 96) Ventura Capital. 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       Log On


   

Question 124476: 96) Ventura Capital. 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= 27,000.T hanks
Answer by checkley71(8403) About Me  (Show Source):
You can put this solution on YOUR website!
12,000(1+R)^2=27,000
12,000(1+2R+R^2)=27,000
12,000+24,000R+12,000R^2=27,000
12,000R^2+24,000R+12,000-27,000=0
12,000R^2+24,000R-15,000=0
3,000(4R^2+8R-5)=0
3,000(2R-1)(2R+5)=0
2R-1=0
2R=1
R=1/2 OR 50% ANSWER.
PROOF:
12,000(1+.5)^2=27,000
12,000(1.5)^2=27,000
12,000*2.25=27,000
27,000=27,000