An Investor Wants to Invest $30,000 Today in a Stock

question 26

Multiple Choice

An investor wants to invest $30,000 today in a stock today that has an expected average compoundrate of return of 7.7% annually over the next five years. If all dividends are reinvested, what will bethe value of this investment at the end of the five-year period if the expectation about future returns is correct?

• A) $45,525
• B) $41,550
• C) $46,975
• D) $43,471

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Definitions:

Work Settings

The environment or context within which job duties are performed, including physical locations and organizational cultures.

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The position or rank of a person or group within the societal hierarchy, determined by factors like wealth, occupation, education, and family background.

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An individual's satisfaction or happiness with oneself; embracing one's own strengths and weaknesses.