An Initial Investment of $10,000 Is Observed Over 3 Years

question 75

Short Answer

An initial investment of $10,000 is observed over 3 years with a geometric mean return at the end of year 3 of .512. Determine the value of the investment after 3 years.

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Definitions:

Capital Contribution

The sum of money or assets that the owners or shareholders provide to a company for its use in business operations.

Contribution

The act of providing a partial payment or service by a party among others towards a common goal or to make up for a joint liability.

Limited Partnership

A limited partnership is a form of partnership similar to a general partnership, except that in addition to one or more general partners, there are one or more limited partners who have limited liability to the extent of their investments and do not participate in the management of the business.

Promissory Note

A written promise to pay a specified sum of money to a designated person at a fixed or determinable future time.