As you are going through family records, you notice that your great-grandfather purchased 500 shares at $2.10 a share for a company called Bubba Gump Shrimp. When you search the internet for this company, you found that they list the value of their stock at $154.16 per share. You decide to sell all the shares and invest this into a retirement fund paying 9% annual interest. If you were to sell all your great-grandfathers shares, how much would you have to invest in your retirement?
The shares are worth 500 × $154.16 = $77,080. Selling all 500 shares would give you $77,080 to invest in the retirement fund. The 9% annual interest affects how that money grows afterward, not the amount you have to invest initially. The correct choice is $77,080.00.
AI-written and checked against the verified answer.