Okay so since we have $389.42 to start with, we will multiply that by 3.2% which gives us roughly $12.46. Knowing that he will get an additional $12.46 per year, we multiply 12.46 by 7, giving us $87.22. Now, we just add 87.22 to 389.42, which is 476.64. Therefore, Armand has $476.64 as his account after 7 years.