Question

3. Some investments in the stock market have earned 12% annually. At this rate, earnings can be found using the formula A = P(1.12)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 $5000 is invested in the stock market at this annual rate of return, what is the expected total value after 20 years?
( Please show your work so I can understand how you got that answer! Thanks in advance! )

Answer 1

$\bf A=P(1.12)^n\qquad \begin{cases} A=\textit{accumulated amount}\\ P=\textit{initial amount}\to &5000\\ n=\textit{elapsed time}\to &20\\ \end{cases} \\\\\\ A=5000(1.12)^{20}$

after 20 years, n = 20.