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Example Dr. Carol Angle, a young pediatrician, invested $30,000 in Berkshire Hathaway in 1957. If Berkshire Hathaway has grown at 23.28% per annum in the last 44 years what is Dr Angle now worth? pv
= 30000 fv= 30000 * (1.2328 ^ 44) Dr Angle is worth $300 million. (Note: this is a true story taken from Forbes magazine) |