how much will $2,500 grow to in 10 years at 9% interest compounded annually? $6,000.00 $5,950.47 $5,918.41…

Explanation:

Step1: Recall compound - interest formula

The compound - interest formula is $A = P(1 + r)^n$, where $P$ is the principal amount, $r$ is the annual interest rate (as a decimal), and $n$ is the number of years. Here, $P=$2500$, $r = 0.09$ (since $9%=0.09$), and $n = 10$.

Step2: Substitute values into the formula

$A=2500\times(1 + 0.09)^{10}$. First, calculate $(1 + 0.09)^{10}$. Using a calculator, $(1.09)^{10}\approx2.36736379$. Then, $A = 2500\times2.36736379\approx5918.41$.

Answer:

$$5,918.41$