Answer
$9.35\%$
Work Step by Step
In this case $A=P(1+r)^t$, where $r$ is the rate, $t$ is the time in years, $A$ is the value after $t$ years.
Here we have:
$A=\$850,000$
$P=\$650,000$
$t=3\text{years}$
Substitute these values into the formula above to obtain:
$\$850,000=\$650,000 \cdot (1+r)^3\\
\dfrac{\$850,000}{\$650,000}=(1+r)^3\\
\sqrt[3] {\frac{\$850,000}{\$650,000}}=\sqrt[3]{(1+r)^3}\\
\sqrt[3] {\frac{\$850,000}{\$650,000}}=1+r\\
\sqrt[3] {\frac{850,000}{650,000}}-1=r\\
1.0935412998-1=r\\
0.0935412998=r\\
r\approx 9.35\%$
