Problem 5-3 Compound Interest (LO1)

Suppose that the value of an investment in the stock market has increased at an average compound rate of about 5% since 1902. It is now 2016.

a. If someone invested $1,000 in 1902, how much would that investment be worth today? (Do not round intermediate calculations. Round your answer to 2 decimal places.)

b. If an investment from 1902 has grown to $1 million, how much was invested in 1902? (Do not round intermediate calculations. Round your answer to 2 decimal places.)