Posted by Anonymous on .
Georgia purchased a house in 1998 for $220,000. In 2003 she sold the house and made a net profit of $50,000. Find the effective annual rate of return on her investment over the 5yr period. Please round the answer to the nearest tenth of percent.

finite math 
Reiny,
let the rate be i
220000(1+i)^5 = 270000
(1+i)^5 = 1.2272727...
take 5th root
1+i = 1.0418..
i = .0418 or appr 4.2% correct to the nearest tenth