How do I tell about the Dow in 100 years?
In the year 1900 the Dow Jones Industrial Average was 65.29. One hundred years later it was 11,600. Using a Rate Calculator from Truth Concepts we can see that 65 (the calculator doesn’t round internally but it prints that way) growing to 11,600 over 100 years is 5.32%. So the Dow has averaged 5.32% over those 100 years.
What if we looked at the next 100 years?
Now we use a Future Value Calculator, put 11,600 in as the Present Value and the 5.32% for the Annual Interest Rate and we can see the Dow will have to be at 2,067,964 in the year 2100 to have averaged a 5.32% annual interest rate during the next 100 years.
What if we looked at the next 100 years?
Now we use a Future Value Calculator, put 11,600 in as the Present Value and the 5.32% for the Annual Interest Rate and we can see the Dow will have to be at 2,067,964 in the year 2100 to have averaged a 5.32% annual interest rate during the next 100 years.
