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 19…

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asked Aug 28, 2021 204k views

1 Answer

Alex Martini · Answer 1 · 2021-09-02T16:07:03+0000

Answer:

FV= $159,840.60

Step-by-step explanation:

Giving the following information:

Initial investment= $1,000

Number of years= 2016 - 1912= 104

Interest rate= 5%

To calculate the value of the investment today, we need to use the following formula:

FV= PV*(1+i)^n

FV= 1,000*(1.05^104)

FV= $159,840.60