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Yanka [14]
3 years ago
8

Suppose that the value of an investment in the stock market has increased at an average compound rate of about 5% since 1907. It

is now 2019. a. If your great grandfather invested $1,000 in 1907, how much would that investment be worth today? (Do not round intermediate calculations. Round your answer to 2 decimal places.) b. If an investment in 1907 has grown to $1 million, how much was invested in 1907? (Enter your answer in dollars. Do not round intermediate calculations. Round your answer to 2 decimal places.)
Business
1 answer:
yarga [219]3 years ago
8 0

Answer:

a $236,157.37

b. $4234.46

Explanation:

Amount of years between 1907 and 2019 = 112 years

a. Investment value = $1000 (1.05)^112 = $236,157.37

b. $1,000,000  / (1.05)^112 = $4234.46

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This would be the temperature.  Hope this helps!!!
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