Question

An investment made in the stock market decreased at a rate of 12% per year for 25 years . What is the current value of the 100,000 investment? Include your calculations in your final answer

Answer 1

Answer:$73947.52

Explanation:

The investment decreases in value, so the common ratio r is (1.000-0.012), or 0.988. Thus, A = $100,000* (0.988) ^25 = $73947.52 is the current value, after 25 years.