According to The New York Times, “During the fourteen years [Mitt Romney] ran it

Question

According to The New York Times, “During the fourteen years [Mitt Romney] ran it, Bain Capital’s investments reportedly earned an annual rate of return of over 100 percent, potentially turning an initial investment of $1 million into more than $14 million by the time he left in 1998.” Source: The New York Times The actual rate of return of Bain Capital during the 14 years that Romney ran it was 113%. Source: The American. How much would $1 million, compounded annually at this rate be worth after 14 years?

Explanation / Answer

P=$1 million

rate=1.13

time=14years

Amount=P(1+i)n=1,000,000(2.13)14=39565.30million

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