A math book said that the answer to (1 + 1/n) to the nth power was 2.5 when n=1. It seems like the wrong answer to me and that the answer should be 2. Please let me know if I am right or explain if I am wrong.

(1 + 1/n)^n = (1 +1/1)^1 = 1 + 1 = 2

I agree with you. Sometimes there are undetected errors in math books. Possibly you could let the author know.