5. Mary Smith can purchase rare gemstones for $2,000 each. She thinks this is a fair price and that the market value of the stones will increase an average of 20 percent per year over the long term. How many stones should she purchase if she wishes her collection to be worth at least $50,000 in five years?

5. Mary Smith can purchase rare gemstones for $2,000 each. She thinks this is a fair price and that the market value of the stones will increase an average of 20 percent per year over the long term. How many stones should she purchase if she wishes her collection to be worth at least $50,000 in five years?

ECON MICRO

5th Edition

ISBN:9781337000536

Author:William A. McEachern

Publisher:William A. McEachern

Chapter13: Capital, Interest, Entrepreneurship, And Corporate Finance

Section: Chapter Questions

Problem 4.9P

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