Answer: $1,467.80
Step-by-step explanation:
The formula for the future value given annual compounding is:
= Amount * ( 1 + rate) ^ number of years
The amount after 3 years at 5.5% is therefore:
= 1,250 * ( 1 + 5.5%)³
= 1,250 * 1.174241375
= $1,467.80
