Stock Markets Exposed
investing in stock?
U.S. small company stocks have returned an average of 14.9% annually for the last 50 years. Use the present value formula P=A(1+r)^-n to find the amount invested today in small company stocks that would be worth $1 million in 50 years, assuming that small company stock continue to return 14.9% annually for the next 50 years?
Public Comments
- Just plug the numbers you have into the formula: A=1,000,000 r=0.149 n=50 so P = 1,000,000 /1.149^50 = 963.83
