Problem Solving for Investments: 16,000(1 + r)2 = 25,000

[candace2289]

Suppose that you invested $16,000 in a high-risk growth fund that after 2 years
was worth $25,000. Your broker used the following equation to find the
average annual rate of return, r.: 16,000(1 + r)2 = 25,000

What is the annual rate of return as a percentage?

 

[Deleted member 4993]

Re: Problem Solving for Investments

Suppose that you invested $16,000 in a high-risk growth fund that after 2 years
was worth $25,000. Your broker used the following equation to find the
average annual rate of return, r.:

\(\displaystyle 16,000(1 + r)^2 = 25,000\)

What is the annual rate of return as a percentage?

This is a straight-forward problem - just isolate, reduce/simplify and solve & check.

Please show us your work and exactly where you are stuck - so that we would know where to begin to help you.

 

[Akosua]

Still need help

This is a straight-forward problem - just isolate, reduce/simplify and solve & check.

Please show us your work and exactly where you are stuck - so that we would know where to begin to help you.

16000(1+r)^2=25000 then I divide my 16000 on both side, square it to get ride of the power, then I take away 1 on both side to get 1. 433 which is wrong. Plz help

 

[Deleted member 4993]

16000(1+r)^2=25000 then I divide my 16000 on both side, square it to get ride of the power, then I take away 1 on both side to get 1. 433 which is wrong. Plz help

16000(1+r)^2=25000

(1+r)^2 = 25/16

1+r = ± 5/4 ...... continue.....

 

[Deleted member 4993]

Are you the original poster Candace 2289?

I didn't even notice that it was almost 7 yr old thread!!!