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After 10 years, 100 shares of stock originally purchased for $500 was sold for $900. What was the yield on the investment? Choose the closest answer.
A dollar today is worth more than a dollar to be received in the future because:
a.Risk of nonpayment in the future
b.The dollar can be invested today and earn interest
c.Inflation will reduce purchasing power of a future dollar
d.None of these
Luke believes that he can invest $5,000 per year for his retirement in 30 years. How much will he have available for retirement if he can earn 8% on his investment?
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