An Initial Investment of $25,000 Forty Years Ago Is Worth

question 7

Multiple Choice

An initial investment of $25,000 forty years ago is worth $1,533,913 today. What is the geometric average return on this investment?

• A) 9.47 percent
• B) 10.84 percent
• C) 11.23 percent
• D) 11.47 percent
• E) 12.08 percent

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Definitions:

Credit Item

An entry that increases the balance of a firm's or individual's account in financial statements.

Balance of Payments

A record of all financial transactions made between a country and the rest of the world over a specific period.

Debit

A financial record that leads to a rise in assets or a reduction in liabilities on a corporation's balance sheet.

Balance of Payments

The balance of payments is a comprehensive record of a country's economic transactions with the rest of the world, including trade, investments, and financial transfers, over a specific time period.