Question

An investment made in the stock market decreased at a rate of 1.2 % per year for 25 years. What is the current value of the $ 100 , 000 investment? Include your calculations in your final answer.

Answer 1

$695,929.30

Explanation:

The formula used is A = P (1 + r/n) ^(nt). Because of the negative interest, the compounded amount is only $695,929.30.