#### Explanation:

Since this is a yearly interest problem, it can be modeled by
$A = P {\left(1 + r\right)}^{t}$ where $P$ is principal (starting amount), $r$ is rate in decimal form, $A$ is the final amount, and $t$ is time. Inputting knowns from the question:
A=$2500(1+0.0375)^5 which simplifies to A=$3005.24... Since we are rounding to the nearest dollar,
A=\$3005