Answer:
The future value of this investment after 10 years is US$ 5,152.58
Step-by-step explanation:
1. Let's review the data given to us for solving the question:
Investment = US$ 2,500
Annual interest rate = 7.5% compounded annually
Duration of the investment = 10 years
2. Let's find the future value of this investment after 10 years, using the following formula:
FV = PV * (1 + r) ⁿ
Replacing with the real values, we have:
FV = 2,500 * (1 + 0.075) ¹⁰
FV = 2,500 * 1.0075¹⁰
FV = 2,500 * 2.06103
FV = US$ 5,152.58
