Assume that at the end of year 0 you invested $100,000 in an investment fund. Since then the annual returns earned by this fund have been as follows: End of Year 1 2 3 Observed Return A. $87,319. B. $90,973. C. $109,683. D. $114,015. 15.00% -40.00% 35.00% It is now the end of year 3 and you expect to earn the same average annual return that you earned over the three-year period above. Based on this expectation, the value of your original $100,000 investment at the end of year 4 will be closest to:

ENGR.ECONOMIC ANALYSIS
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Chapter1: Making Economics Decisions
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Assume that at the end of year 0 you invested $100,000 in an investment fund. Since then the
annual returns earned by this fund have been as follows:
End of Year
1
2
3
Observed Return
A. $87,319.
B. $90,973.
C. $109,683.
D. $114,015.
15.00%
-40.00%
35.00%
It is now the end of year 3 and you expect to earn the same average annual return that you
earned over the three-year period above. Based on this expectation, the value of
your original $100,000 investment at the end of year 4 will be closest to:
Transcribed Image Text:Assume that at the end of year 0 you invested $100,000 in an investment fund. Since then the annual returns earned by this fund have been as follows: End of Year 1 2 3 Observed Return A. $87,319. B. $90,973. C. $109,683. D. $114,015. 15.00% -40.00% 35.00% It is now the end of year 3 and you expect to earn the same average annual return that you earned over the three-year period above. Based on this expectation, the value of your original $100,000 investment at the end of year 4 will be closest to:
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