Mark Johnson invests a fixed percentage of his salary at the end of each year. This year he invested $1500. For the next 5 years, he expects his salary to increase 8% annually, and he plans to increase his savings at the same rate. How much will the investments be worth at the end of 6 years if the average increase in the stock market is (a) 8%? (b) 5%? (c) 3%?
Mark Johnson invests a fixed percentage of his salary at the end of each year. This year he invested $1500. For the next 5 years, he expects his salary to increase 8% annually, and he plans to increase his savings at the same rate. How much will the investments be worth at the end of 6 years if the average increase in the stock market is (a) 8%? (b) 5%? (c) 3%?
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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Mark Johnson invests a fixed percentage of his salary at the end of each year. This year he invested $1500. For the next 5 years, he expects his salary to increase 8% annually, and he plans to increase his savings at the same rate. How much will the investments be worth at the end of 6 years if the average increase in the stock market is (a) 8%? (b) 5%? (c) 3%?
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