word problem- investing in stocks

[debbie68]

Please help!

U.S. small company stocks have returned an average of 14.9% annually for the last 50 years. Use Present value formula P=A(1+r)-n the( -n is the exponent) Find the amount invested today in small company stocks that would be worth $1 million in 50 years assuming that small company stocks continue to return 14.9% annually for the nex 50 years. I have tried everthing but I can figure the correct plug-ins. Pleas help!!!! It is due today.

 

[stapel]

What do all the variables stand for?

Eliz.

 

[tkhunny]

U.S. small company stocks have returned an average of 14.9% annually for the last 50 years. Use Present value formula P=A(1+r)-n the( -n is the exponent) Find the amount invested today in small company stocks that would be worth $1 million in 50 years assuming that small company stocks continue to return 14.9% annually for the nex 50 years. I have tried everthing but I can figure the correct plug-ins. Pleas help!!!! It is due today.

I'm willing to guess.
P = Present Value = P
A = Accumulated Value = Future Value = $1,000,000
r = Annual Interest Rate = 14.9%
n = Years to Discount = 50

P = 1000000*(1+0.149)^-50

You may be astounded at the magnitude of the value. 50 years is a VERY LONG TIME at 14.9%. Wow!

Note: PLEASE define your terms. Few abbreviations are standard across a very large population. In a world-wide forum, you simply MUST define what it is you are talking about.