Suppose a man invested 

​$250250 

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 

20192019​? 

​(Note: Assume the initial investments were the equivalent of 

​$250250 

in 

20192019 

​dollars.)

...

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Part 1

**Category**

**Average Annual Return**

Stocks

7.57.5​%

Bonds

2.22.2​%

Cash

1.21.2​%

To calculate the future value of each investment (stocks, bonds, and cash) at the end of 2019, we will use the formula for compound interest:

\[
A = P(1 + r)^t
\]

Where:
- $A$ is the future value of the investment,
- $P$ is the initial principal (\$250,250 in this case),
- $r$ is the annual rate of return (expressed as a decimal),
- $t$ is the time period in years.

Since the investment was made at the end of 1900 and we are calculating for the end of 2019, $t = 2019 - 1900 = 119$ years.

### Step-by-Step Calculation:

1. **Stocks**:
   - Initial investment $P = 250,250$,
   - Annual return $r = 7.5\%$ or $0.075$,
   - Time $t = 119$ years.
   
   \

Suppose a man invested $250,250 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 2019? (Note: Assume the initial investments were the equivalent of $250,250 in 2019 dollars.) The average annual returns were: Stocks - 7.5%, Bonds - 2.2%, Cash - 1.2%.

Calculate the future value of $250,250 invested in stocks, bonds, and cash at the end of 1900 with average annual returns of 7.5%, 2.2%, and 1.2% respectively. Learn how to use the compound interest formula to find the value of these investments in 2019, suitable for students in Grades 10-12.

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