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Which explicit formula can be used to find the accounts balance at the beginning of year 3?

Which explicit formula can be used to find the accounts balance at the beginning of-example-1

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The formula for the amount A in an account with principal P and interest rate r compounded annually for t years is

... A(t) = P(1+r)^t

You want to find A when P=400, r=0.05, and t=3. Substituting those values gives you

... A(3) = 400·(1 +0.05)³

The appropriate choice is

... A. A(3) = 400·(1 +0.05)³

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