Jeremy Siegel shows us some very interesting data. His research showed that stocks have returned an average real rate of return of 6.8% from 1802 up to 2005. Assume that you had a relative who invested $1,000 in the US stock market in 1802 and left it for the next 205 years. How much real value would the account now contain?

Multiple Choice

• $539,964,654

• $436,694,123

• $719,625,927

• $625,596,396

Now assume that your ancestor decided to invest the $1,000 in the bond market instead of the stock market. The bond market has had a real return of 3.5% per year over this same 205-year period. How much money would the account now contain?

Multiple Choice

• $4,754,260

• $1,155,505

• $3,615,520

• $2,365,450

Lets now assume that your ancestor invested the $1,000 dollars in a bank account earning 8% simple interest per year for the 205-year period. How much money would be in the bank account?

• $15,697

• $13,650

• $14,940

• $16,475