# finite math

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 5-yr period. Please round the answer to the nearest tenth of percent.

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1. 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

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posted by Reiny

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