Saturday

August 30, 2014

August 30, 2014

Posted by **Gayla** on Thursday, January 29, 2009 at 12:15am.

Year 1970 1975 1980 1985

Capital 500 966 1856 3578

- College Algebra -
**drwls**, Thursday, January 29, 2009 at 1:18amThere are two ways of doing this, and they give different answers. The change between 1975 and 1980 is $890 in 5 years, or $178 per year. That is 18.4% of the INITIAL amount per year. But it is not the average annual rate of change during the five year peiod

The best way to compute the annual rate of change, r, for that five year period is to use the formula

(1 +r)^5 = 1856/966 = 1.9213

This leads to

1 + r = 1.1395

r = 13.95 % per year

**Related Questions**

investment - A certain amount of money is invested at 6% per year. A second ...

investment - A certain amount of money is invested at 6% per year. A second ...

Algebra - Amount of an investment. AMount of an investment rate r is given by A=...

College Algebra - Investment A: $5,000 invested for 7 years compounded ...

algebra - determine the amount of an investment if $500 is invested at an ...

Algebra - Determine the amount of an investment if $500 is invested at an ...

algebra - Could you please answer this? Investment. Part of $25,000 is invested ...

compound interest - How do I solve these problems? Complete the table for a ...

Economics - Use the concepts of marginal cost and marginal revenue to derive an ...

Algebra investment - An investor had a total of 25,000 put into a portfolio of ...