The main formula is A=P(1+r/n)^nt, where A=amount of $ in the account at the specified time, P=principal (amount originally invested), r=interest rate, expressed as a decimal number, t=time, in years, of the investment, and n=number of times the account is compounded annually. In our equation: P=$11,600 r=7.25%=.0725 t=17 years n=1 (compounded annually) A= 11600(1+.[0725/1])^(1*17) =11600(1+.0725)^17 =11600(1.0725)^17 =11600(3.286654969) A=$38125.20
