Craig invested $131,995 in the Dow-Jones Industrial Average Stocks when the average index was 2,896.  Ten years later, Craig's investment was worth $590,000.  What must the index have been ten years later? Round your final answer properly to the nearest whole number. ____________ 

Expert Answers

An illustration of the letter 'A' in a speech bubbles

Craig invested $131995 in the Dow-Jones Industrial Average stocks when the average index was at 2896. Ten years later his investment was worth $590000. Assume the change in the value of his investment is the same as the change in the Dow Jones Average.

The value of the index after 10 years was `(590000/131995)*2896` ` ~~` 12945

The required value of the Dow Jones average is 12945

Approved by eNotes Editorial Team