Suppose you invest 2500 at an annual interest rate of 7.5% compounded annually how much will you have in the account after 10 ye

Question

3 years ago

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ars

1 answer:

Mnenie [13.5K] · Answer 1 · 2021-12-15T12:33:43+03:00

Answer:

<u>The future value of this investment after 10 years is US$ 5,152.58</u>

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