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The solution is explained below −

Future value = to be calculated

Present value =Rs. 2500/-

Interest rate = 10%

Time = 2 years

Fv = Pv * [1 + (i/n)] ^ (n*t) Fv = 2500 *[1+ (10%/1)] ^ (1*2) Fv = 2500 * [1 + 0.1] ^2 Fv = 2500 * [1.1] ^2 Fv = 2500 * 1.21 Fv = 3025/-

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