Answer:
Explanation:
The formula to calculate the future value of an investment with compounded interest is:
Future value = Principal * (1 + rate/compoundings per year)^(number of years * compoundings per year)
In this case, the principal is $10,000, the interest rate is 2.5%, compounded annually, and the number of years is 20. So, the future value can be calculated as follows:
Future value = $10,000 * (1 + 2.5%/1)^(20 * 1)
Future value = $10,000 * (1.025)^20
Future value = $10,000 * 1.62897526
Future value = $16,289.75
Therefore, $10,000 deposited in an account earning 2.5% interest compounded annually would be worth $16,289.75 in 20 years.