Assume you are making an investment of $10000 in a stock that on average generates 7...
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Assume you are making an investment of $10000 in a stock that on average generates 7 percent per year. What is the most likely value of this investment in two years? (Hint: You need to use a simple future value of a lump sum formula to answer this question FV=PV*(1+r)^n. FV is future value, PV is present value, n is number of years and r is discount rate - which in this setting is growth rate. You are solving for FV.) Assume you are making an investment of $10000 in a stock that on average generates 7 percent per year. What is the most likely value of this investment in two years? (Hint: You need to use a simple future value of a lump sum formula to answer this question FV=PV*(1+r)^n. FV is future value, PV is present value, n is number of years and r is discount rate - which in this setting is growth rate. You are solving for FV.)
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To calculate the most likely value of the investment in two years use the future value formul... View the full answer
Related Book For
Financial Reporting Financial Statement Analysis and Valuation
ISBN: 978-0324302950
6th edition
Authors: Clyde P. Stickney
Posted Date:
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