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?

I feel like this should be easy, but i am lost.

Question

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?

I feel like this should be easy, but i am lost.

anonymous · Answer

answer choices are:
~$49,500.00
~$46,750.00
~$13,899.79
~$12,636.18

anonymous · Answer

Never mind guys i got it thanks though... its A

anonymous · Answer

This is just about understanding what information the text gives you:
"$2,500 is invested in the stock market..." becomes your P,
and "the expected total value" asks for A,
after 18 years" is your n.

anonymous · Answer

The answer isn't option A...

anonymous · Answer

Plug in P and n into the equation given, and you'll get out A (in the equation) which is the answer.

anonymous · Answer

right... i took...oh... wait...

anonymous · Answer

i keep getting A...

anonymous · Answer

You have:
A=P(1.10)^n
P = 2500
n = 18

So:
A = 2500(1.10)^18 = 2500*5.559... = 13899

anonymous · Answer

Did you do the same thing??

anonymous · Answer

um... yeah actualy

anonymous · Answer

Oh, maybe the order of your answers aren't actually A,B,C,D then.. c: