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How much would the investment be worth

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Question - This data was from Jeremy Siegel's books, "The Future for Investors" and "Stocks for the Long Run". Siegel tells us that, over the period from 1802 - 2005, the long-run average real return in the US equity market is 6.8% and it is 3.5% in the bond market. Based on Siegel's data, answer the following three questions.

If a relative invested $1,000 in the bond market in 1802 and allowed it to grow at 3.5% for the next 220 years, how much would the investment be worth in 2022?

a. $1,935,873

b. $28,886,128

c. $94,990,812

d. $5,978,662

Reference no: EM132614640

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