1. What is the Stock Prediction Formula?

The stock prediction formula estimates future value of an investment based on compound growth. It's fundamental in finance for projecting investment growth over time.

2. How Does the Calculator Work?

The calculator uses the compound growth formula:

Where:

• \( Current \) — Initial investment amount
• \( Rate \) — Growth rate per period (decimal)
• \( Periods \) — Number of time periods

Explanation: The formula accounts for compounding, where each period's growth builds on the previous period's total.

3. Importance of Stock Prediction

Details: Accurate predictions help investors make informed decisions, compare investment options, and plan financial goals.

4. Using the Calculator

Tips: Enter current value in dollars, growth rate as decimal (0.05 for 5%), and number of periods. All values must be valid (current > 0, periods ≥ 1).

5. Frequently Asked Questions (FAQ)

Q1: How accurate is this prediction?
A: It assumes constant growth rate, which rarely happens in reality. Use as an estimate, not a guarantee.

Q2: What time period should I use?
A: Match periods to your rate frequency (e.g., monthly rate with months, annual rate with years).

Q3: Can I use this for negative growth rates?
A: Yes, enter negative rates for depreciation calculations.

Q4: What's the difference between simple and compound growth?
A: Simple growth doesn't compound - it's linear. Compound growth gives more accurate long-term projections.

Q5: How do I convert percentage to decimal?
A: Divide percentage by 100 (e.g., 5% = 0.05).