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What si the average annual return where 12,000(1+r)^2 = 27,00?

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Henry invested $12,000 in a new restaurant. When the restaurant was sold two years later, he received $27,000. Find his average annual return by solving the equation 12,000(1+r)^2 = 27,000.

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In this solution we look at the calculations for determining the average annual return.

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