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Question 142027: Investment: The Dreyfus stocks have returned an average of 14.9% per year for the past 50 years. Use the following investment formula to determine the amount invested today for Dreyfus’ stock that would be worth $1,000,000 in 50 years.
The present value P that will amount to A dollars in n years with interest compounded annually at annual interest rate r.
Answer by stanbon(75887)   (Show Source):
You can put this solution on YOUR website! The Dreyfus stocks have returned an average of 14.9% per year for the past 50 years. Use the following investment formula to determine the amount invested today for Dreyfus’ stock that would be worth $1,000,000 in 50 years.
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A(t) = P(1+(r/n))^(nt)
10^6 = P(1+(0.149/1)^(1*50)
10^6 = P(1037.53)
P = $963.83
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Cheers,
Stan H.
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