SOLUTION: Harry 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 =
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-> SOLUTION: Harry 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 =
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Question 76570: Harry 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. Answer by stargrl12566(16) (Show Source):
You can put this solution on YOUR website! 12000(1+r)^2=27000
(1+r)^2=2.25 Divide by 12000
1+r=2.25^(1/2) Flip the exponent, put in on the other side
of = sign.
1+r=1.5 simplify number with the exponent
r=.5 subtract the 1.
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