Your portfolio has lost an average of 5% each year for the last three years. Your initial investment was $25,000. What is the current value of your portfolio

Respuesta :

Based on the initial investment of $25,000, the current value of your portfolio should be $21,434.34.

What would your current portfolio be valued at?

This can be found with the future value formula as:

= Current value x ( 1 + rate) ^ number of years

As the rate was reducing, it will be a negative figure:

= 25,000 x ( 1 - 5%)³

= 25,000 x 0.857375

= $21,434.34

Find out more on future value at https://brainly.com/question/25805668.

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