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) , where P is the initial value of the 𝑛 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 where P is the initial investment of $1,000, the annual rate of return is 15% or 1.15, and the number of years is 18.
A = $1,000(1.15)^18
A = $1,000(12.37545)
A = $12,375.45
Therefore, the expected total value after 18 years is $12,375.45.
c. $12,375.45