2. An engineering student invested $1,000 in the stock market. For the first 4 years the average return was 8% annually, and it then averaged 12% for an additional 4 years. If no additional contributions were made, how much is in the account after 8 years?
2. An engineering student invested $1,000 in the stock market. For the first 4 years the average return was 8% annually, and it then averaged 12% for an additional 4 years. If no additional contributions were made, how much is in the account after 8 years?
Essentials of Economics (MindTap Course List)
8th Edition
ISBN:9781337091992
Author:N. Gregory Mankiw
Publisher:N. Gregory Mankiw
Chapter19: The Basic Tools Of Finance
Section: Chapter Questions
Problem 3CQQ
Question
Engineering Econ HW2 Q2

Transcribed Image Text:2. An engineering student invested $1,000 in the stock market. For the first 4 years the average
return was 8% annually, and it then averaged 12% for an additional 4 years. If no additional
contributions were made, how much is in the account after 8 years?
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