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Novay_Z [31]
3 years ago
15

Suppose that the value of an investment in the stock market has increased at an average compound rate of about 5% since 1912. It

is now 2016. a. If someone invested $1,000 in 1912, how much would that investment be worth today?
Business
1 answer:
Fittoniya [83]3 years ago
6 0

Answer:

FV= $159,840.60

Explanation:

Giving the following information:

Initial investment= $1,000

Number of years= 2016 - 1912= 104

Interest rate= 5%

<u>To calculate the value of the investment today, we need to use the following formula:</u>

FV= PV*(1+i)^n

FV= 1,000*(1.05^104)

FV= $159,840.60

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