How much will one million dollars be worth fourty years from now.?

Question

In todays dollar amount.

Answer 1

If you mean purchasing power worth, only a small fraction of today's worth. If you mean in nominal dollar terms, it would be a very large number of dollars using even today's interest rates in a money market account. It is very likely you could buy a very nice house in most parts of the country for $1,000,000 right now. In 40 years, the same amount may only buy a very small house or maybe it will take that much to buy a car. Printing more and more dollars is something the U.S. is very good at. I think we can feel pretty comfortable predicting the purchasing power of the dollar will fall drastically over the next 40 years, just as it has since the 1913 creation of the Federal Reserve (the engine of inflation).

Answer 2

Depends both on inflation and on what you do with it in the meantime. If you can get 6%, and inflation is 2%, that leaves 4%, and by the rule of 70/72, dividing 4 into 72 gives a doubling time of 18 years. After 36 years, it's $4 million in present-day dollars, and after four more years it'll be about $4.7 million.

Answer 3

You need to provide two rates to solve this.
1 - growth rate for your investment each year
2 - inflation rate that will reduce the purchasing power each year.

A very simple answer, assuming only compounding on an annual basis, is to subtract the inflation rate from the growth rate, and use that as the net growth rate.

Then, apply this formula:
Principal X (1+net_growth_rate) ^ 40.
where Principal = 1,000,000 and "^ 40" = raise to the power of 40.

Example: growth = 7%, inflation = 3%. Net growth = 4%.
1,000,000 (1+0.04) ^ 40 = 1,000,000 X 4.081021 = 4,801,020

The problem becomes more complex if either or both of the rates change every year, as they will in real life.

Answer 4

Use the rule of 72......when the interest rate (compounded - no principle removed) times the number of annual terms = 72, at that point the initial principle is doubled.
Example: $1000 invested at 7.2% for 10 years will equal $2000...7.2 x 10 = 72...if the rate of return was 14.4, it would double in 5 years....so the answer to your question requires an assumed rate of return...then do the math.... 72/ror = amount of time to doubling .....also an inexpensive HP calculator will allow you to enter the variables and solve for future value. based on present value, # of terms, and rate of return per term

Answer 5

depend how muchinterest earn
If with the inflation rate 3% by the fed standard. 1 million should be in between 3 million and 4 million

Answer 6

$8.5 million if you invest at 5.5 percent and never add anything else to the investment. Happy spending on your birthday in 40 years!

Answer 7

$100.00. Inflation :) Invest wisely and dont spend it all in one place.

Answer 8

$1,000,000
Is this a trick question?