If the Billy Bob Jones Index (BBJI) was at $11,000 and moved up by 7.4% per...
If the Billy Bob Jones Index (BBJI) was at $11,000 and moved up by 7.4% per year for each of the next eight years, what would be the value of the index at the end of the 8th year of sustained growth?
Homework Answers
The value of the index at the end of 8th year is given by = value in the beginning x (1 + rate of growth)^time
= 11000 x (1 + 7.4%)^8
= $19472.73
This is the required value.
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