How much would $200 invested at 7% interest compounded annually be
worth after 5 years? round your answer to the nearest cent.

$280.51

Step-by-step explanation:

The formula we want to use:

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:

Simplify a little:

Just a little more:

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

d

step-by-step explanation: