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value = 2500(1.06)^10
= ....
= ....
Future Value = Present Value * (1 + Rate/100)^Time
In this case, the present value (P) of the diamond is $2500, the rate (R) is 6%, and the time (T) is 10 years.
Substituting these values into the formula, we get:
Future Value = $2500 * (1 + 6/100)^10
Now, let's simplify the equation step by step:
1 + 6/100 = 1.06
(1.06)^10 = 1.790847424
Finally, multiply the present value by the exponential factor to find the future value:
Future Value = $2500 * 1.790847424
Future Value ≈ $4,477.12
Therefore, the value of the diamond after 10 years would be approximately $4,477.12.