SOLUTION: Venture 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 equ

Algebra ->  Finance -> SOLUTION: Venture 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 equ      Log On


   

Question 274957: Venture 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.
Answer by checkley77(12844) About Me  (Show Source):
You can put this solution on YOUR website!
12,000(1 + r)^2=27,000
(1+r)^2=27,000/12,000
(1+r)^2=2.25
Take the sqrt of both sides.
1+r=1.5
r=1.5-1
r=.5 or 50% ans. for the annual return.