Can someone explains this please cuz i dont understand it that well.

Question

What is the final amount in an account after 3years compounded annually with an initial amount of $3,200 and with an annual rate of 0.25%

Answer 1

Remember your formula...
A = P(1 +i)^n
Where P is the principal amount of $3200
interest i is the rate as a decimal number... so .0025
n is the number of times the money is looked at... so annualy means once a year for 3 years. n=
A = 3200x(1 + .0025)^3
....

Answer 2

Thank you!