Answer: $2593.74.
Step-by-step explanation:
A = P(1 + r/n)^(nt)
Where:
A = the future value of the investment
P = the principal amount (initial investment)
r = annual interest rate (as a decimal)
n = number of times the interest is compounded per year
t = number of years
In this case, P = $1000, r = 10% = 0.10, n = 1 (compounded annually), and t = 10 years.
A = 1000(1 + 0.10/1)^(1*10)
A = 1000(1 + 0.10)^10
A = 1000(1.10)^10
A ≈ 1000(2.59374)
A ≈ $2593.74
