00:01
All right.
00:02
So this problem is looking to find the compound annual growth rate.
00:09
So we abbreviate that with c compound annual growth rate.
00:14
C -a -g -r.
00:15
Now the equation for this is just the standard equation is your ending value, the end amount of money you have, divided by your beginning value, starting amount of money you have.
00:28
And that is raised to the power of one divided by the number of money.
00:31
Number of years that you have, then you subtract one, multiply it by 100 to get your percent, and that tells you your annual growth rate.
00:44
So in order to do this, we just kind of plug in the numbers and put in a calculator and let the calculator do the hard work.
00:51
So i will plug in the numbers here.
00:53
For this specific problem, so we have $42 ,000 is what we made, and we only invested 8 ,150.
01:07
Nice...