Answer:
$25,689.775
Step-by-step explanation:
The interest has to be in decimal form. So 1.25/100=0.0125
Plug everything into the equation for compound equation [tex]A=P(1+\frac{r}{t})^{n}^{t}[/tex]
Which is A = 24750 [(1 + 0.0125/1)^(1)(3)]
Type them in a calculator and get A ≈ $25,689.775
***the question says "compounded annually" so the equation for compound interest [tex]A=P(1+\frac{r}{t})^{n}^{t}[/tex] should be used. Your provided formula of A = P(1 + R times T) shouldn't be used here, it is for simple interest but not compound.*** (^_^)
