Tammy has $ 3,500 that she wants to invest in stock. She believes she can earn a 12% annual return. What would be the value of Tammy’s investment in 10 years if she is able to achieve her goal?
Answer to relevant QuestionsDawn decides to invest $ 2,000 each year in stock at the end of each of the next five years. She believes she can earn a 9% return over that time period. How much will Dawn’s investment be worth at the end of five years? Advise the Sampsons on whether they should invest their money each month in bank CDs, in stocks, or in some combination of the two, to save for their children’s college education. What is inflation? How is inflation measured? How does inflation affect stock prices? What are some advantages of using online brokerage services? Describe how an investor would set up and use an online brokerage account. Discuss default risk as it relates to bonds. How may investors use risk ratings? What is the relationship between the risk rating and the risk premium? How do economic conditions affect default risk?
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