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 of years the money is invested. If $1,500 is invested in the stock market at this annual rate of return, what is the expected total value after 18 years?
A) $29,700.00
B) $28,050.00
C) $8,339.88
D) $7,581.71
To calculate the expected total value after 18 years, we can use the formula A = P(1.10)^n, where P = $1,500, n = 18, and the annual rate of return is 10%.
A = $1,500(1.10)^18
A = $1,500(6.727499)
A = $28,050.00
Therefore, the expected total value after 18 years is $28,050.00. So, the correct answer is B) $28,050.00.