According to the 2004 Andex Chart, the average return of a $1 investment made in 1925 (with no acquisition costs or taxes, and all income reinvested into the S&P 500) would have grown to $2641 by 2005.

1. What is the 80-year growth factor?
2. What is the 80-year percentage growth rate?
3. What is the average annual growth factor?
4. What is the average annual percentage change?
5. an equation for the function |(y), which would model the value of the initial $1 investment, I, as a function of the number of years since 1925.
6. Evaluate I (90) and explain the meaning of the numerical value in the context of the problem.

Answer rating: 100% (QA)

Analyzing the Investment Growth We can solve this problem by using the concept of compound interest ... View the full answer