The stock market has an average annual return of 10% per year. We will consider the annual return to be an annual interest rateNow suppose the stock market for the next 10 years has a strong growth rate. If you invested your $1400 stimulus check in the stock market with 16% annual interest, compounded annually, how much money would you have after 10 years?

Invested Amount (P)$1400 Interest rate(r) = 16% or 0.16 compounded annually, Time(T) = 10years To…

Answered: Now suppose the stock market for the…

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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The stock market has an average annual return of 10% per year. We will consider the annual return to be an annual interest rate

Now suppose the stock market for the next 10 years has a strong growth rate. If you invested your $1400 stimulus check in the stock market with 16% annual interest, compounded annually, how much money would you have after 10 years?

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