Answer:
A = P(1 + r/n)^(nt)
In this case, we have:
P = $220
r = 0.0325 (3.25% expressed as a decimal)
n = 1 (compounded annually)
t = 6
A = 220(1 + 0.0325/1)^(1*6)
= 220(1.0325)^6
= $265.28
To find the compound interest earned, we subtract the initial principal from the final amount:
Compound Interest = A - P
= $265.28 - $220
= $45.28
Therefore, the compound interest earned on $220 invested at 3.25% compounded annually for 6 years is $45.28.