Question

stefan decides to invest a sum of $1,200 into one of his favorite stocks that typically earns 9% or more each year. if the stock earns 9% this year, what will be the total value of his investment?

Answer 1

To calculate the total value of Stefan's investment, use the formula: Total Value = Initial Investment + (Initial Investment * Interest Rate). Substituting the given values, the total value is $1,308.

Step-by-step explanation:

To calculate the total value of Stefan's investment, use the formula: Total Value = Initial Investment + (Initial Investment * Interest Rate). Substituting the given values, the total value is $1,308.

To calculate the total value of Stefan's investment, we can use the formula:

Total Value = Initial Investment + (Initial Investment * Interest Rate)

Given that Stefan's initial investment is $1,200 and the stock earns 9% interest, we can substitute these values into the formula:

Total Value = $1,200 + ($1,200 * 0.09) = $1,200 + $108 = $1,308

Therefore, the total value of Stefan's investment will be $1,308.

Stefan decides to invest $1,200 into a stock that typically earns a 9% annual return. To calculate the total value of his investment after one year, we can use the formula for simple interest: total value = principal × (1 + rate of return). Therefore, the total value of his investment after one year would be $1,200 × (1 + 0.09), which equals $1,308.