The formula for calculating compound interest is:

$A = P(1 + i)^n$

Where:

• $A$ is the future value of the investment/loan, including interest.
• $P$ is the principal investment amount (the initial deposit or loan amount).
• $i$ is the interest rate per period.
• $n$ is the number of periods.

Given:

• $P = 2500$
• $i = 0.066$
• $n = 25$

Now, substitute these values into the formula:

$A = 2500(1 + 0.066)^{25}$

Let me calculate this for you.The future value $A$ of the investment, rounded to the nearest cent, is:

$A = \$12,355.78$

Would you like more details on the calculation or have any further questions?

Here are 5 related questions for further exploration:

1. How would the future value change if the interest rate was lower, say 5%?
2. What happens to the future value if the investment period is reduced to 20 years?
3. How does compound interest compare to simple interest over the same time frame?
4. What would the future value be if compounded semi-annually instead of annually?
5. How does inflation affect the real value of the future amount?

Tip: The frequency of compounding (monthly, quarterly, etc.) can significantly impact the future value.