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 $15,000 is invested in the stock market at this annual rate of return, what is the expected total value after 19 years? explain
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, we can calculate the expected total value after 19 years.
Given that $15,000 is invested in the stock market at an annual rate of return of 10%, we can plug in the values into the formula:
A = 15,000(1.10)^(19)
A = 15,000(2.358)
A ≈ $35,370.50
Therefore, the expected total value after 19 years is approximately $35,370.50.