Calculus
posted by Catie on .
Zoe purchased a house in 1999 for $196,000. In 2004, she sold the house and made a net profit of $80,000. Find the effective annual rate of return on her investment over the 5year period. (Round your answer to the nearest hundredth of a percentage point.)

let the rate be i
then ....
196000(1+i)^5 = 276000
(1+i)^5 = 1.408163...
i+i = 1.07085 ..... I took the fifth root of both sides
i = .07085
the effective rate was 7.09% 
Thank you!!

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