An investor buys a stock for $10 per share and expects the value of the stock to
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An investor buys a stock for $10 per share and expects the value of the stock to grow annually at 9 percent for ten years, at which time the individual plans to sell it. What is the anticipated sale price? This is an example of the future value of $1 growing at 9 percent for ten years. The future value is in which 2.367 is the interest factor for the future sum of $1 at 9 percent for ten years. The investor anticipates selling the stock for $23.67.
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