6 trillion at the end of 1999 what would it have been

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Unformatted text preview: ould the money have grown to in 1999? - What is n? 1999  ­1626 = 373 - Then: FV1999 = $24*(1+0.072)373 = $4.4 trillion (12 0s) – According to Case (2000), the aggregate value of all residential real estate in the US was about $11.6 trillion at the end of 1999 . – What would it have been worth at the end of 2009? - n = 2009 – 1626 = 383 - Then: FV2009 = $24*(1+0.072)383 = 8.88 trillion – Note that the value doubled over 10 years. » Compound interest  ­> investments grow exponentially - Second Rule of Time Travel - In Finance, we often have to find today s value of (more or less certain)...
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