The compound interest formula is given by:
[tex]A=P(1+\frac{r}{n})^{nt}[/tex]where P is the principal, r is the interest rate (indecimal form), n is the number of times compound per unit of time and t is the time.
In this case the principal is 3250, the interest rate is 0.0475, n is one (since the interest is compounded anually) and t is three. Plugging the values we have:
[tex]\begin{gathered} A=3250(1+\frac{0.0475}{1})^{1\cdot3} \\ A=3735.47 \end{gathered}[/tex]Therefore the balance after three years is $3735.47
