The IRR is basically the percentage rate of increase per year.

The formula for this is:

P = A(1 + r)^t, and we need to solve for r, where P is the amount at the end of t years, starting with A.

Plug in what we have: 17000 = 12000(1+r)^3 Divide by 12000: (1+r)^3 = 17/12 Take the cube root: 1+r = cuberoot(17/12) Subtract 1: r = cuberoot(17/12) - 1 r = 0.12311 r = 12.311%

Let me know if you have any questions. If not, thanks for pressing "Accept".

-Scott

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