Some investments in the stock market have earned 15% annually. The total value of the
investment, A, at this rate can be found using 𝐴 = 𝑃(1. 15)^n, where P is the initial value of the
investment, and n is the number of years the money is invested. If $1,000 is invested in the stock
market at this annual rate of return, what is the expected total value after 18 years?
a. $4,054.47
b. $5,559.92
c. $12,375.45
d. $19,800.00
To find the expected total value after 18 years, we can use the formula A = P(1.15)^n
Given: P = $1,000, n = 18
A = 1000(1.15)^18
A = 1000(5.5599206)
A = $5,559.92
Therefore, the expected total value after 18 years is $5,559.92
The answer is b. $5,559.92