The formula to use is,
[tex]A=P(1+\frac{r}{n})^{nt}[/tex]
Given
[tex]\begin{gathered} P=\text{ \$2500}=Now \\ A=Next \\ r=4\%=\frac{4}{100}=0.04 \\ n=1,t=1 \end{gathered}[/tex]
Therefore,
[tex]\begin{gathered} Next=Now(1+\frac{0.04}{1})^{1\times1}=Now(1+0.04)=Now(1.04) \\ \therefore Next=Now\times1.04 \end{gathered}[/tex]
Hence, the answer is
[tex]Next=Now\times1.04\text{ \lparen Option C\rparen}[/tex]
