Answer: The value of the investment would be $4,075
Step-by-step explanation: The initial investment, that is, the principal is given as $2500, and it was invested for a period of 10 years at the rate of 6.3%. Using the simple interest calculation formula, the investment would have a present value as follows;
Interest = P x R x T
Where P = amount invested (2500), R = rate of interest (6.3 or 0.063) and T = number of years (10)
Interest = 2500 x 0.063 x 10
Interest = 1575
The value of the investment at 6.3% after 10 years is now;
Initial investment + Interest
2500 + 1575 = 4075
Therefore the value of the investment is $4,075
