Some investments in the stock market have earned 10% annually. At this rate, earnings can be found 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 if years the money is invested. If $2,500 is invested in the stock market at this annual rate of return, what is the expected total value after 18 years?
To find the expected total value after 18 years, we can use the formula A=P(1.10)^n and substitute the given values:
A = $2,500(1.10)^18
A = $2,500(6.7275)
A = $16,818.75
Therefore, the expected total value after 18 years would be $16,818.75.