The annual growth rate r for an investment can be found using , 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? a.

Step-by-step explanation:

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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%

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answer: 193

explanation:

200-7 = 193