The formula to calculate the earnings is:
A = P(1 + r)^n
Where:
A = total value of the investment
P = initial value of the investment
r = annual rate of return (in decimal form)
n = number of years
In this case, P = $1,500, r = 10% = 0.10, and n = 18.
Let's substitute the values into the formula:
A = $1,500 * (1 + 0.10)^18
Calculating this, we get:
A ≈ $1,500 * (1.10)^18
A ≈ $1,500 * 5.874
A ≈ $8,811
Therefore, the expected total value after 18 years is approximately $8,811.
None of the given options match this result, so there appears to be an error in the options provided.
Some investments in the stock market have earned 10% annually. At this rate, earnings can be found using the formula , where A is the total value of the investment, P is the initial value of the investment, and n is the number of years the money is invested. If $1,500 is invested in the stock market at this annual rate of return, what is the expected total value after 18 years? (1 point) Responses $29,700.00 $29,700.00 $28,050.00 $28,050.00 $8,339.88 $8,339.88 $7,581.71
1 answer