a diamond was purchased for $2500. If is its value increases 6% each year, give the value of the diamond after 10 years?

value = 2500(1.06)^10

= ....

To calculate the value of the diamond after 10 years, we need to use the formula for compound interest:

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.