Answer:
Step-by-step explanation:
The initial amount of money that he invested is $25. It means that P = $25.
The interest is compounded at 4% every year. It means that
r = 4% = 4/100 = 0.04
The formula for compound interest is A(t) = P(1 + i)t. It becomes
A(t) = 25(1 + 0.04)^t
A(t) = 25(1.04)^t
Completing the table, it becomes
At t = 0,
A(0) = 25(1.04)^0
A(0) = $25
At t = 10,
A(10) = 25(1.04)^10
A(10) = $37
