Ask Question
31 August, 23:31

Suppose that the value of an investment in the stock market has increased at an average compound rate of about 5% since 1914. It is now 2019. a. If your great grandfather invested $1,000 in 1914, how much would that investment be worth today?

+2
Answers (1)
  1. 1 September, 02:45
    0
    FV = $273381.67

    Explanation:

    Giving the following information we need to find the value of the investment in present day

    I=1000

    i=0.05

    n=115

    The general formula to calculate the value of an investment for cases like this is:

    FV = I*[ (1+i) ^n]

    FV = 1000 * (1,05^115) = $273381.67
Know the Answer?
Not Sure About the Answer?
Find an answer to your question ✅ “Suppose that the value of an investment in the stock market has increased at an average compound rate of about 5% since 1914. It is now ...” in 📘 Business if you're in doubt about the correctness of the answers or there's no answer, then try to use the smart search and find answers to the similar questions.
Search for Other Answers