Question 199788
12,000( 1 + r)^2 = 27,000
12,000(1+2r+r^2)=27,000
12,000+24,000r+12,000r^2-27,000=0
12,000r^2+24,000r-15,000=0
(6,000r-3,000)(2,000r+5,000)=0
6,000-3,000=0
r=3,000/6,000
r=.5 or 50% is the average annual return on investment.