Algebra

Some investments in the stock market have earned 12% annually. At this rate, earnings can be found using the formula A = P(1.12)^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 $5000 is invested in the stock market at this annual rate of return, what is the expected total value after 20 years?

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  1. A = 5000 (1.12)^20
    = 5000 * 9.646293
    = 48,231.47

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