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, use the formula A=P(1.15)^n.
P = $1,000
n = 18
A = 1000(1.15)^18
A = 1000(7.063298)
A ≈ $7,063.30
Therefore, the expected total value after 18 years would be $7,063.30.
The closest answer choice is C) $7,063.30.