Suppose that the value of an investment in the stock market has increased at an average compound

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Suppose that the value of an investment in the stock market has increased at an average compound rate of about 5% since 1900. It is now 2016.

a. If your great grandfather invested $1,000 in 1900, how much would that investment be worth today?

b. If an investment in 1900 has grown to $1 million, how much was invested in 1900?

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Fundamentals of Corporate Finance

ISBN: 978-1259722615

9th edition

Authors: Richard Brealey, Stewart Myers, Alan Marcus

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Question Posted: Jun 24, 2017 08:56 AM

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Suppose that the value of an investment in the stock market has increased at an average compound

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Fundamentals of Corporate Finance

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