Directions: Go to https://financial-calculators.com/historical-investment-calculator and review the purpose of the investment calculator as a tool. This should give some context as to what an index is, how to use the calculator, and important dates.

For each investment (1-3) select: $10,000 amount invested One time investment: Yes Start/End Year: Recent 10-year period (i.e. 2010-2020) Recent 25-year period (i.e. 1995-2020) Adjust the Index/Commodity for Inflation: No Index: Select a total of 3 (S&P 500, the Nasdaq Index and the Dow Jones Industrial average ) The final tab includes a chart of the 3 selected indices. You will want to change Logarithmic Scale to No, providing a consistent interval on the y-axis. In the right hand corner of the chart you can select the menu, downloading the graph (.png, .jpg, .pdf).

Write a 2-3 page paper including the following components:

Introduction - Identify the purpose of the calculator and what potential applications it could be used for. Introduce the three indices or investments that you selected. State the purpose of the assignment.

Body / Analysis - Provide an overview of investment and results of the historical calculator: Describe the three selected indices. What are they composed of (assets)? Provide a summary of the 10-year performance, including the chart. Provide a summary of the 25-year performance, including the chart. Identify the variables discussed in the textbook. Relate your findings from the calculator with formula 3.1 in the text. Does Future value match the ending dollar amount, given the other variables?

Conclusion - Summarize your findings of this data exercise. Provide any observations or insights you may have about this historical investment tool. Was the highest return the same for both the 10-year and 25-year period?