Your dad invested $40 for you in 1951 in a fund and you have not withdrawn any money since. If the fund has averaged a return of 8% over the last 67 years, what is the current value of that investment? (Enter just the number in dollars without the $ sign or a comma and round off decimals to the closest integer, i.e., rounding $30.49 down to $30 and rounding $30.50 up to $31.)

To calculate the current value of the investment, we use the formula for compound interest:

\[
FV = PV \times (1 + r)^t
\]

Where:
- $FV$ is the future value (what the investment is worth today).
- $PV$ is the present value ($40 in 1951).
- $r$ is the annual return rate (8%, or 0.08 in decimal form).
- $t$ is the number of years the investment has grown (67 years).

Let's plug in the values:

\[
FV = 40 \times (1 + 0.08)^{67}
\]

Now, we'll calculate the future value.# Given values
initial_investment = 40  # Present value in dollars
annual_return_rate = 0.08  # Annual return rate (8%)
years = 67  # Number of years

# Future value formula using compound interest
future_value = initial_investment * (1 + annual_return_rate) ** years

# Rounding off to the nearest dollar
rounded_future_value = round(future_value)
rounded_future_valueThe current value of the $40 investment made in 1951, with an 8% average annual return over 67 years, is $6,941.

Do you want more details or have any questions?

Here are 5 related questions:
1. How would the value change if the return rate was 10% instead of 8%?
2. What would the investment be worth in 70 years at the same 8% return rate?
3. How much would the investment be if it was only invested for 50 years at 8%?
4. What if the return was compounded monthly instead of annually—how would that affect the final value?
5. What is the total interest earned over the 67 years?

**Tip:** Compound interest grows exponentially over time, making even small initial investments grow significantly with long periods.

Learn how to calculate the current value of a $40 investment made in 1951, growing at an average annual return of 8% using compound interest formula. Understand the exponential growth of investments over long periods. Suitable for advanced high school students and above.

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