Question

Hey, I have some questions on some math problems for Algebra 2. Think you can help? Here's the first one :)

Some investments in the stock market have gained 10% annually. the total value of the investment, A, and this rate can be found using A= P(1.10)^n where P is the initial value of this investment, and N is the number of years the money is invested. if $1,000 is invested in the stock market at this annual rate of return, what is the expected total value after 18 years?

1. $4,054.47
2. $5,559.92
3. $18,700.00
4. $19,800.00

I originally thought it was $18,700.00 but I don't know

Answer 1

The formula to find the total value of investment is
A=P(1.10)^N
P=$1000
N=18
A=1000 (1.10)^18
A = 1000 * 5.55991731349
A=5559.91731349
Rounding off to the nearest hundredths, we get
A = $5559.92
The expected total value after 18 years is $5,559.92