The expression 2500(1.06)^t represents the value of a $2500 investment that earns 6% interest per year, compounded annually for t years, what is the value of a $2500 investment at the end of 3 years?

All you have to do to arrive at the desired answer here is to substitute 3 for t in the given expression   2500(1.06)^t.

It is important that you know this formula and how to use it.

If t = 3 years, then you'd have   $2500(1.06)^3 = $2500(1.19)= $2977.54

Ais the correct answer