Suppose a man invested $300 at the end of 1900 in each of three funds that tracked the averages of stocks, bonds, and cash, respectively. Assuming that these investments grew at the rates given in the accompanying table, approximately how much would each have been worth at the end of 2021? (Note: Assume the initial investments were the equivalent of $300 in 2021 dollars.) Category Stocks Bonds Cash Average Annual Return 6.5% 2.7% 0.7% His investment in the fund tracking stocks would be worth approximately $ (Do not round until the final answer. Then round to the nearest dollar as needed.)
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The investments were made at the end of 1900 and evaluated at the end of 2021. Therefore, the number of years is: \[ 2021 - 1900 = 121 \text{ years} \] Show more…
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