Question 154629This question is from textbook elementary and intermediate algebra
: I posted this earlier but I cannot seem to get the answer can someone please help out thanks. I have tried to figure this one out can you help? #82. Venture capital. Henry invested $12,000 in a new restaurant. When the restaurant was sold 2 years later, he received $27,000. Find his average annual return by solving the equation 12,000(1+r)^2=27,000.
Thanks for your help.
This question is from textbook elementary and intermediate algebra
Answer by stanbon(75887)   (Show Source):
You can put this solution on YOUR website! Henry invested $12,000 in a new restaurant. When the restaurant was sold 2 years later, he received $27,000. Find his average annual return by solving the equation 12,000(1+r)^2=27,000.
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I think you want to solve for "r":
12,000(1+r)^2=27,000
(1+r)^2 = 27/12 = 9/4
1+r = 3/2
r = 1/2 or 0.5
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So the average return was 0.5*12000 = $6000.00
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Cheers,
Stan H.
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