1. **State the problem:** We want to find the amount of money in an account after 25 years if 1600 dollars is deposited at an annual interest rate of 5.25%, compounded annually. 2. **Formula used:** The formula for compound interest is $$A = P \left(1 + \frac{r}{n}\right)^{nt}$$ where: - $A$ is the amount of money accumulated after $t$ years, including interest. - $P$ is the principal amount (initial money). - $r$ is the annual interest rate (decimal). - $n$ is the number of times interest is compounded per year. - $t$ is the number of years. 3. **Given values:** - $P = 1600$ - $r = 5.25\% = 0.0525$ - $n = 1$ (compounded annually) - $t = 25$ 4. **Substitute values into the formula:** $$A = 1600 \left(1 + \frac{0.0525}{1}\right)^{1 \times 25} = 1600 \left(1 + 0.0525\right)^{25} = 1600 \times 1.0525^{25}$$ 5. **Calculate the power:** $$1.0525^{25} \approx 3.6533$$ 6. **Calculate the amount:** $$A = 1600 \times 3.6533 = 5845.28$$ 7. **Final answer:** After 25 years, the account will have approximately **5845.28** dollars.