Use A = P (1 + r/n) ^(nt). Assuming that we're dealing with years here, n = 1, so we have
A = P (1 + r) ^(t), where r is the interest rate as a decimal fraction.
The investment decreases in value, so the common ratio r is (1.000-0.012), or 0.988.
Thus, A = $100,000* (0.988) ^25 = $73947.52 is the current value, after 25 years.
