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##### BUS 204 Quantitative Business Analysis-Homework 5: Growth Rates 1.Bob's grandfather dies and leaves him an inheritance

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Question;1 Bob's grandfather dies and leaves him an inheritance that he;uses to make the initial investment below.;Bob plans to invest it and hopes to earn the constant rate of return;per year shown shown below for the next 10 years. If he doesn't add to it or withdraw from it;at any time but allows it to be reinvested automatically year after year;what will it be worth in 10 years?Q2;Assume it is Dec. 31;of the starting year shown below.;Bob's grandfather dies and leaves him an inheritance that he uses to;make the initial investment below. Bob;invested it immediately in the S&P 500. What was it worth on Dec. 31;exactly 10 years later, and what was the compounded rate of return over that;span? (See last tab for the annual;rate of return for money invested in the S&P 500 Index since 1928.)Q3;Assume it is Dec. 31;of the starting year shown below.;Bob's grandfather dies and leaves him an inheritance that he uses to;make the initial investment below. Bob;invested it immediately in the S&P 500. a) What was it worth on Dec. 31;exactly 10 years later, and what was the compounded rate of return over that;span? b) What do you notice about the;difference between this 10 year span;and the one in the last question? (See last tab for the annual rate of return;for money invested in the S&P 500 Index since 1928.)fOR DETAILED QUESTIONS REFER ATTACHMENT

Paper#60251 | Written in 18-Jul-2015

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