Answer:
Step-by-step explanation:
The question is not complete, here is the complete question
The annual growth rate r for an investment can be found using P=Po(1+rt), where is time in years, P is the present value, and P0 is the original investment. An investment of $4000 was made in 2005 and had a value of $7500 in 2010. What was the average growth rate of the investment?
Given
Po=$4000
P=$7500
time = 2010-2005= 5 years
rate r =?
Step two
7500=4000(1+r*5)
7500=4000+20000r
7500-4000=20000r
3500=20000r
divide both sides by 20000
r=3500/20000
r=0.175
% rate= 0.175*100
%rate= 17.5
Therefore the average growth rate is 17.5%
