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An Investor Wants to Invest $30,000 Today in a Stock

Question 26

Multiple Choice

An investor wants to invest $30,000 today in a stock today that has an expected average compoundrate of return of 7.7% annually over the next five years. If all dividends are reinvested, what will bethe value of this investment at the end of the five-year period if the expectation about future returns is correct?


A) $45,525
B) $41,550
C) $46,975
D) $43,471

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