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Assume you are making an investment of $10000 in a stock that on average generates 7 percent per year. What is the most likely

 

Assume you are making an investment of $10000 in a stock that on average generates 7 percent per year. What is the most likely value of this investment in two years? (Hint: You need to use a simple future value of a lump sum formula to answer this question FV=PV*(1+r)^n. FV is future value, PV is present value, n is number of years and r is discount rate - which in this setting is growth rate. You are solving for FV.)

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