Question 1179867
the growth rate per year is .25.


the general formula is f = p * (1 + r) ^ n


when p = 12 and r = .25, the formula becomes f = 12 * (1 + .25) ^ n


it looks like they're using A for f.


it's not clear what they're using for n.


the fo0rmula becomes A = 12 * (1 + .25) ^ n


.25 = 25/100, so the formula can also be shown at A = 12 * (1 + 25/100) ^ n


for example:


when n = 3, the formula becomes 
A = 12 * (1 + .25) ^ 3 = 12 * 1.953125 = 23.4375.


(1 + .25) ^ 3 means (1 + .25) raised to the third power.