Most people don't keep two million dollars under their mattresses. They usually invest it so that it can earn a certain rate of return. How much that sum (principal) will be worth in 100 years depends upon the rate of return of the investment, i.e., the interest, and whether or not the interest is compounded (usually it is).
You can use an on-line interest calculator to easily figure out the future value of $2,000,000 in 100 years: http://www.moneychimp.com/calculator/compound_interest_calculator.htm
$2000,000.00 that is compound once per year:
@ 1% yields future value of $5,409,627.66
@ 5% yields future value of $263,002,515.69
@ 11% yields future value of $68,128,350,539.29
Compound Interest:
Interest on an investment's interest, plus previous interest. The more frequently this occurs, the sooner your accumulated interest will generate additional interest.
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The annual interest rate for your investment...
The actual rate of return is largely dependant on the type of investments you select. The average compounded rate of return for the S&P 500, including reinvestment of dividends, was approximately 11.5% per year. Savings accounts at a bank pay as little as 1% or less.
It is important to remember that future rates of return can't be predicted with certainty and that investments that pay higher rates of return are subject to higher risk and volatility. The actual rate of return on investments can vary widely over time, especially for long-term investments.
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2007-08-30 19:48:43
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answer #1
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answered by Einstein 5
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If you keep it in cash and assume 3% inflation a year it will have the purchasing power of 2,000,000/20 = $100,000 dollars today.
2007-08-30 22:05:22
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answer #3
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answered by meg 7
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i don't think we all get to live till 100 more years.. global warming, etc, but I'd say,, it'll be about a billion. hah.
2007-08-30 19:37:05
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answer #4
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answered by saraツ 4
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