Algebra Word problem

Question

The value V , in dollars, of an investment in year t is given by V = 2500(1.0325)t. Describe the investment in words.

Answer 1

What would the value be of an investment of $2,500 after t years at a fixed 3.25% interest or return rate?

 

The formula should be: V = 2500(1.0325)^t

The 1+rate should be raised to the t power, not multiplied times t.