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?
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.