An investment earns 30% over 5 years. What is the effective annual rate?

\( 1.3P=P (1+r)^5 \)
\( 1.3=(1+r)^5 \)
\( 1+r = (1.3)^\frac{1}{5} \)
\( r = (1.3)^\frac{1}{5}-1 \approx 5.387\% \)