Answer: Jenna would have $37,175 in 30 years if she saves $2500 per year with an interest rate of 10% compounded annually.
Explanation:
To calculate the total amount Jenna would have after 30 years of saving $2500 per year with an interest rate of 10% compounded annually, we can use the formula for compound interest:
A = P(1 + r/n)^(nt)
Where:
A = the final amount (principal + interest)
P = the initial principal (the amount Jenna saves each year, $2500 in this case)
r = the interest rate (10% in this case, so 0.10)
n = the number of times interest is compounded per year (annually in this case, so 1)
t = the number of years (30 in this case)
Plugging in the values:
A = $2500(1 + 0.10/1)^(1*30) = $2500(1.10)^30 = $2500(14.87) = $37,175
So, Jenna would have $37,175 in 30 years if she saves $2500 per year with an interest rate of 10% compounded annually.