How much would $200 invested at 7% interest compounded annually be

worth after 5 years? Round your answer to the nearest cent.

A (t) = P (1+5)

Step-by-step explanation:

Initial amount invested in the account is $200 This means that the principal, P = $200

It was compounded annually. This means that it was compounded once in a year. So

n = 1

The rate at which the principal was compounded is 7%. So

r = 7/100 = 0.07

It was compounded for 5 years. So

t = 5

The formula for compound interest is

A = P (1+r/n) ^nt

A = total amount in the account at the end of t years. Therefore

A = 200 (1+0.07/1) ^1*5

A = 200 (1.07) ^5 = 200 * 1.402552

A = $280.51