The formula for determining compound interest is expressed as
A = P(1 + r/n)^nt
Where
A is the amount after t years
P is the principal or initial amount
t is the number of years
n is the number of compoundings in a year
r is the interest rate
From the information given,
P = 4000
r = 3% = 3/100 = 0.03
t = 25
n = 1 beacuse it is compounded once in a year
Thus, we have
A = 4000(1 + 0.03/1)^1 * 25
A = 4000(1.03)^25