Answer:
A
Explanation:
Simple interest gains interest only on the principal sum and so each year has the same interest. So, this example is not simple interest. Compound interest is calculated on the principal and the accumulated interest of the previous years. So, this is compound interest.
Interest is 4%.

Here A is the amount we receive after n years, P is the principal and R is the rate of interest.
A = $1300 , R = 4%

P = $ 1250