1. Future Price Calculation for VOO
We use the compound interest formula:
FV=PV×(1+r)tFV = PV \times (1 + r)^t
where:
- FV = Future Value (Estimated Price)
- PV = Current Price of VOO (~$460 as of early 2024)
- r = Annual return rate (10% or 0.10)
- t = Number of years (10)
FV=460×(1.10)10FV = 460 \times (1.10)^{10} FV=460×2.5937FV = 460 \times 2.5937 FV≈1,193FV \approx 1,193
2. Projected VOO Price in 10 Years
Estimated VOO price in 10 years (2034) = ~$1,193 per share
This means if you buy VOO at $460 per share today, its price could more than double over the next decade.
3. Alternative Growth Scenarios
| Annual Return | Estimated Price in 10 Years |
|---|---|
| 8% (Conservative) | ~$994 |
| 10% (Historical Average) | ~$1,193 |
| 12% (Optimistic) | ~$1,430 |
4. Key Takeaways
VOO provides stability and long-term growth as it follows the S&P 500.
At 10% annual return, the price could reach ~$1,193 per share.
Reinvesting dividends could further increase returns.
Market volatility: Short-term dips are expected, but historically, the S&P 500 trends upward over time.
