Some investments in the stock market have earned 10% annually. At this rate, earnings can be found using the formula A=P(1.10)^n, 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?

Answer 1

First, we plug in the values into the formula:

A = 1500(1.10)^18

Now, we can calculate the expected total value after 18 years:

A = 1500 * (1.10)^18
A = 1500 * 6.727499
A = 10091.2485

Therefore, the expected total value after 18 years of investing $1,500 at 10% annually is approximately $10,091.25.