Michael Lynch Invested $10,000 in the Rearguard Fund Four Years

question 47

Multiple Choice

Michael Lynch invested $10,000 in the Rearguard Fund four years ago. All earnings were reinvested in the fund. If his compound annual rate of return was 7%, what is his investment worth today (round to the nearest dollar) ?

• A) $13,108
• B) $10,700
• C) $12,800
• D) $763

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Definitions:

Diaphragm

A large, dome-shaped muscle located at the base of the lungs that plays a crucial role in breathing, contracting and flattening to allow air into the lungs.

Intercostals

Muscles situated between the ribs that play a role in the mechanics of breathing.

Apices of Lungs

The uppermost parts of the lungs, situated near the clavicle (collarbone).

Clavicles

Long, thin bones that serve as a strut between the shoulder blade and the sternum or breastbone, commonly referred to as collarbones.