SOLUTION: George is contemplating the purchase of 100 shares of a stock selling for 19 dollars per share. The stock pays no dividends. The history of the stock indicates that it should grow

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Question 709475: George is contemplating the purchase of 100 shares of a stock selling for 19 dollars per share. The stock pays no dividends. The history of the stock indicates that it should grow at an annual rate of 18% per year. How much will the 100 shares of stock be worth in 6 years?
Answer by checkley79(3341) About Me  (Show Source):
You can put this solution on YOUR website!
100*19(1+.16)^6
1,900*1.16^6
1,900*2.4364=$4,629.15 ANS.