Some investments in the stock market have earned 10% annually. At this rate, earnings can be found using the formula upper A equals upper P left-parenthesis 1.10 right-parenthesis superscript n baseline, 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

A. $29,700.00

B. $28,050.00

C. $8,339.88

D. $7,581.71

1 answer

To find the expected total value after 18 years, we plug in the values into the formula A = P(1.10)^n:

A = $1,500(1.10)^18
A = $1,500(6.7275)
A = $10,091.25

Therefore, the expected total value after 18 years is $10,091.25.

The closest option is:
C. $8,339.88