The compound interest formula is given by:
A=P(1+r)^n
P=principle
r=rate
n=time
But:
P=$1000, r=3.25%, n=time
thus the function representing this will be:
A=1000(1+3.25/100)^n
A=1000(1.0325)^n
Thus the amount after 8 years will be:
A=1000(1.0325)^8
A=1,291.58
ANSWER: 1,291.58
