Question 161291
12,000(1+r)^2=27,000
12,000(1+2r+r^2)=27,000
r^2+2r+1=27,000/12,000
r^2+2r+1=2.25
r^2+2r+1-2.25=0
r^2+2r-1.25=0
(x+2.50(x-.5)=0
x-.5=0
x=.5 or 50% annual return of investment.
Proof:
12,000(1+.5)^2=27,000
12,000(1.5^2)=27,000
27,000=27,000