Calculate the future value of an investment with an initial cost of M500, an inflation rate of 10%, over 5 years.

Here are the solutions to the questions:

Question 1:

Step 1: Identify the given values.
Initial cost ($P$) = M500
Inflation rate ($r$) = 10% = 0.10
Time ($t$) = 5 years

Step 2: Use the compound interest formula for future value.

$$FV = P(1 + r)^t$$

Step 3: Substitute the values and calculate.

$$FV = M500(1 + 0.10)^5$$ $$FV = M500(1.10)^5$$ $$$$