SOLUTION: Henry invested $12,000 in a new resturant When the restaurant was sold two years later, he recieved $27,000. Find his average annual return by solving the equation %12,000 (1 + r )
Algebra ->
Polynomials-and-rational-expressions
-> SOLUTION: Henry invested $12,000 in a new resturant When the restaurant was sold two years later, he recieved $27,000. Find his average annual return by solving the equation %12,000 (1 + r )
Log On
Question 221624: Henry invested $12,000 in a new resturant When the restaurant was sold two years later, he recieved $27,000. Find his average annual return by solving the equation %12,000 (1 + r )^2 = 27,000
Can someone help me understand how to solve this problem? Answer by rfer(16322) (Show Source):
You can put this solution on YOUR website! 12000 (1+r)^2=27000
(1+r)^2=27000/12000
(1+r)^2=2.25
1+r=1.5
r=.5 or 5% per yr
the total return first yr =12000*1.5=18000
total return second yr =18000*1.5=27000
(