Answer:
$280.51
Step-by-step explanation:
The formula we want to use:
[tex]A=P(1+\frac{r}{n})^{nt}[/tex]
where:
P is the principal
r is the the rate
n is the number of compounding per year
t is total number of years
A is the ending amount
We are given P=200, r=.07, n=1 (compounded once a year), t=5.
So plugging this in:
[tex]A=200(1+\frac{.07}{1})^{1 \cdot 5}[/tex]
Simplify a little:
[tex]A=200(1+.07)^{5}[/tex]
Just a little more:
[tex]A=200(1.07)^{5}[/tex]
Now I'm going to put the rest of this in the calculator:
200*(1.07)^5 is what I'm putting in my calculator.
This is approximately 280.5103461.
To the nearest cent this is 280.51
