Finite Math and Applied Calculus (6th Edition)

Published by Brooks Cole
ISBN 10: 1133607705
ISBN 13: 978-1-13360-770-0

Chapter 2 - Review - Review Exercises - Page 158: 2

Answer

$\$ 11,312.50$

Work Step by Step

The future value of an investment of PV dollars $\\$ at an annual simple interest rate of r $\\$ for a period of t years is$\\\\$ $FV=PV(1+rt)\\\\$ Here, $\\$ $PV=10000, \ \ \ r=0.0525,\ \ t=2.5\\\\$ $FV=10,000(1+0.0525(2.5))= \$ 11,312.50$
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