In Chapter 12, we looked at data from Jeremy Siegel which showed us that $1.00 invested in the US stock market in 1802 would of grown to $632,680 by 2005, which is a 6.8% annually compounded rate of return. Assume that you had an ancestor who invested $1,000 in 1902 but they put the money in a bank account earning 6.8% simple interest. How much money would be in the bank account 120 years later?

Select one:

a. $9,160

b. $18,940

c. $28,940

d. $12,940

e. $8,000