c) 8,339.88
Using the formula A = P(1 + r)^n, where A is the total value of the investment, P is the initial value of the investment, r is the annual rate of return (0.10 in this case), and n is the number of years (18 in this case):
A = 1500(1 + 0.10)^18
A = 1500(2.5937424601)
A = 3890.61369015
Therefore, the expected total value after 18 years would be $8,339.88.
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?
a)29,700.00
b)28,050.00
c)8,339.88
d)7,581.71
1 answer
1 answer