The reinvestment of capital gains and dividends can make a significant difference in your total return. Consider the following situation, to determine the difference reinvestment can make over a $5-$year period.

Assume all distributions are made on the last day of the year at the closing net asset value $($NAV$).$ Ignore tax consequences for the scenarios in a and $b,$ below.

a$.$ Calculate the ending investment value plus the total of distributions received assuming no reinvestment.

b$.$ Calculate the ending investment value assuming all distributions are reinvested.

c$.$ Calculate and explain the difference.

a$.$ The ending investment value plus the total of distributions received assuming no reinvestment is $.($Round to the nearest cent.$)$

Data table

$($Click on the following icon in order to copy its contents into a spreadsheet.$)$

$\backslash$table$[[$Initial purchase amount,$$8,000\mathrm{.}00$