If the value of a stock depreciates at 3% a year, what will a $100 investment be worth in 20 years?

$54.38

Step-by-step explanation:

The amount of stock purchased was $100. This stock depreciates by 3% annually which means that it loses 3% of its value every year.

To find the value in 20 years, you can use the compound interest formula:

= Initial value * ( 1 - rate) ^ no. of years

= 100 * ( 1 - 3%)²⁰

= $54.38

step-by-step explanation: