Some investments in the stock market have earned 10% annually. At this rate , earnings can be found using the formua 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 2,500 is invested in the stock marked at this annual rate of return, what is the expected total value after 18 years?
A. $49,500.00
B. $46,750.00
C. $13,899.79
D. $12,636.18
Using the formula A=P(1.10)^n, we can plug in the given values:
A = 2,500(1.10)^18
Using a calculator, we can simplify this to:
A ≈ 13,899.79
Therefore, the expected total value after 18 years is $13,899.79, which corresponds to option C.