Question 169086
12,000(1+r)^2=27,000
(1+r)^2=27,000/12,000
(1+r)^2=2.25
1+r=sqrt2.25
1+r=1.5
5=1.5=1
r=.5 or 50% annual return on the value of the restraunt.
Proof:
12,000(1+.5)^2=27,000
12,000(1.5)^2=27,000
12,000*2.25=27,000
27,000=27,000