You Invested $5,000 Eight Years Ago

question 60

Multiple Choice

You invested $5,000 eight years ago.The arithmetic average return on your investment is 10.6 percent and the geometric average return is 10.23 percent.What is the value of your portfolio today?

• A) $9,092
• B) $10,623
• C) $10,899
• D) $10,947
• E) $11,195

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Definitions:

Algebraic Expression

A mathematical phrase that can include numbers, variables, and operation symbols but does not contain an equality sign.

Simplify

To make something easier to understand or do by reducing its complexity.

Collect Like Terms

The process of combining terms in an algebraic expression that have the same variables raised to the same power.

Simplify

To make (something) simpler or easier to do or understand.