At the beginning of year 1, Josie invests $400 at an annual compound interest rate of 5%. She makes no deposits to or withdrawals from the account.

Which explicit formula can be used to find the account's balance at the beginning of year 3?

A.
A(3) = 400 • (1 + 0.05)3

B.
A(3) = 400 + (3 – 1)(0.05 • 400)

C.
A(3) = 400 + (0.05 • 400)3 – 1

D.
A(3) = 400 • (1 + 0.05)3 – 1