Your parents spent $7,800 to buy 200 shares of stock in a new company 12 years ago.The stock has appreciated 14.6 percent per year on average.What is the current value of those 200 shares?
A)$36,408.70
B)$40,023.03
C)$39,580.92
D)$40,515.08
E)$37,449.92

Question

Quizplus · Accepted Answer

The future value of an investment can be calculated using the formula: FV = PV * (1 + r)^n, where PV is the present value ($7,800), r is the annual appreciation rate (14.6% or 0.146), and n is the number of years (12). Plugging in the values: FV = 7800 * (1 + 0.146)^12 = $40,023.03.

Your Parents Spent $7,800 to Buy 200 Shares of Stock