Your employer gives you a stock bonus of $1,000 in your company at the end of each year.You plan to retire in 20 years.The stock has a growth rate of 15 percent per annum.What will the value of your gain on the stock be for the 20 years?

Question

Quizplus · Accepted Answer

Using the formula for future value of a single sum, the value of the stock bonus after 20 years will be:

FV = PV*(1+r)^n

FV = $1,000*(1+0.15)^20

FV = $82,443.60

Therefore, the value of the gain on the stock will be $82,443.60 after 20 years.

Your Employer Gives You a Stock Bonus of $1,000 in Your