Question

elin lindberg has received a $12,000 gift from her mother and is trying to decide how to invest it. she thinks she would like to invest it in stocks, because she knows that stocks have been appreciating by about 10 percent over the last several years. what aspect of investing interests elin?

Answer 1

Elin Lindberg is interested in the potential appreciation of stocks and their rate of return, which can be augmented by the effects of compound interest.

Elin Lindberg is interested in investing her $12,000 gift in stocks because of the potential for appreciation.

From historical trends, she has noticed that stocks can provide a substantial annual rate of return, approximately 10 percent over the last several years.

This interest in stocks likely stems from their potential for capital gains and possibly also dividends, as well as the profound effect of compound interest on an investment's growth over time.