Question

Suppose that the value of an investment in the stock market has increased at an average compound rate of about 5% since 1904. It is now 2016

a. If someone invested $1,000 in the stock market in 1904, how much would that investment be worth today? (Do not round intermediate Calculations)

Step 1

**Calculation of Worth of Investment Today:**

With the current year being 2016, there are totally 112 year between year 1904 and year 2016.

Step 2

**The worth of investment can also be calculated using a excel function =FV. The excel spreads...**

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