Question

Some investments in the stock market have earned 10% annually. At this rate , earnings can be found using the formua 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 marked 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

Answer 1

The earnings by a stock invested at r% for n years is obtained by the formular A = P(1 + r)^n; where P is the initial investment = 1,500; r is the interest rate = 10% and n is the numberof years of the investment. Here A = 1,500(1 + 0.1)^18 = 1,500(1.1)^18 = 8,339.88.Hope this helps. Let me know if you need additional help!

Answer 2

P=1500
n=18

A=1500(1.10)^18
A=8399.88

answer is C