After 10 years, 100 shares of stock originally purchased for $500 was sold for $900. What was the yield on the investment?

After 10 years, 100 shares of stock originally purchased for $500 was sold for $900. What was the yield on the investment? Choose the closest answer.

a.19%

b.2.5%

c.8.5%

d.6%

A dollar today is worth more than a dollar to be received in the future because:

a.Risk of nonpayment in the future

b.The dollar can be invested today and earn interest

c.Inflation will reduce purchasing power of a future dollar

d.None of these

Luke believes that he can invest $5,000 per year for his retirement in 30 years. How much will he have available for retirement if he can earn 8% on his investment?

a.$566,400

b.$681,550

c.$150,000

d.$162,000