Solve
Step
Identify
each part
P = 32,500
Po= 5,000
t = 6
Interpret Þ
The
investment earn about 32% a year for 6 years.
A $5,000 stock investment in 1992 was worth
$32,500 in 1998.
Find the average
annual growth rate of the stock.
|
Solve |
Step |
|
|
Annual Growth Rate |
|
Identify
each part
|
|
|
P = 32,500 |
current amount = 32,500 |
|
Po= 5,000
|
initial amount = 5,000 |
|
t = 6
|
t = 1998 - 1992 = 6 |
|
|
Annual Growth Rate |
|
|
|
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