I need to know right now how to figure out a percentage number of the profit a theme park stock made from the last year and the last five years. The data I have is the close for Disney today, for example, which is 33.74, and the close exactly a year ago was 29.21, and 5 years ago it was 16.00. I can't think or remember how to make an accurate percentage of the difference between a year and five years. Someone please help...?
15% and 110% respectively, right?
Okay, now I have some new things to figure out. How do I predict what this stock will be worth in five years?
Then I have to compare my results to investing $10,000 in a savings account that has an interest rate of 3.5% compounded annually for five years.
Then, if I kept my stocks for five years, which investment would provide me with the most profit: my theme park or the savings account?
I just need most of this cleared up for me in a strictly mathetmatical way.
So you have .
So: which is the value of the savings account.
The value of the stock would hypothetically be .
To predict the value of the stock in 5 years, I believe you have to use the % change in 5 years from the last part, multiply it by the current value, and then add it the new total. Then compare this value to what you get from the savings account. The savings account would provide the most profit. In practice however, the value of a stock is extremely hard to predict. The stock market is what is called a noisy system. Fixed mathematical equations aren't practical in modeling the value of a stock/ basket of stocks.
If I add 0.035 to 1 and divide it, that would be 1.035, and when I try to take it to the fifth power (or even second or third power, for that matter) there are way too many decimal places coming up, and way too small a number. Am I doing it wrong?
ETA: Actually, is the answer 11,876?