To find the total value of the investment after 18 years, we can use the formula:
A = P(1 + r)^n
Where:
P = $1,500 (initial value of the investment)
r = 10% or 0.10 (annual rate of return)
n = 18 years
Plugging in the values:
A = $1,500(1 + 0.10)^18
A = $1,500(1.10)^18
A = $1,500(6.727499)
A = $10,091.25
Therefore, the expected total value of the investment after 18 years would be approximately $10,091.25.
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 answer
1 answer