Answer:
D
Step-by-step explanation:
The interest is compounded annually, which means that interest from the previous year earns you even more money next year.
It should be obvious that after one year Alexis will have
$475 + $475 * 1.25% = $475 * 100% + $475 * 1.25% =
= 101.25% * $475 = 1.0125 * $475
Then, next year she would have
1.0125 * $475 + (1.0125 * $475) * 1.25% =
= (1.0125 * $475) * 1.0125 = 1.0125^2 * $475
See the pattern?
Alexis will have $475 * 1.0125^x after x years.
