Question

At the beginning of year 1, Sam invests $700 at an annual compound interest

Answer 1

at the beginning of year 4, only 3 years have elapsed, the 4th year hasn't started yet, since it's at the beginning, so at the beginning of year 4 we can say only 4-1 years have elapsed.

$~~~~~~ \textit{Compound Interest Earned Amount} \\\\ A=P\left(1+\frac{r}{n}\right)^{nt} \quad \begin{cases} A=\textit{accumulated amount}\\ P=\textit{original amount deposited}\dotfill &\ 700\\ r=rate\to 5\%\to \frac{5}{100}\dotfill &0.05\\ n= \begin{array}{llll} \textit{times it compounds per year}\\ \textit{annually, thus once} \end{array}\dotfill &1\\ t=\textit{elapsed years}\dotfill &3 \end{cases}$

$A=700\left( 1 + \frac{0.05}{1} \right)^{1\cdot 3}\implies A = 700(1+0.05)^3\implies A(4)=700(1+0.05)^{4-1} \\\\[-0.35em] ~\dotfill\\\\ ~\hfill A(n)=700(1+0.05)^{n-1}~\hfill$