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 $15,00 is invested in the stock market at this annual rate of return, what is the expected total value after 19 years?

1 answer

To find the expected total value after 19 years, we can use the formula A = P(1.10)^n, where A is the total value, P is the initial value, and n is the number of years.

In this case, the initial value P is $1500, and the number of years n is 19. So we can plug in these values into the formula to find the expected total value:

A = 1500(1.10)^19

Calculating this expression, we find:

A ≈ 1500(3.1721576765)

A ≈ $4758.24

Therefore, the expected total value after 19 years is approximately $4758.24.