Problema Solution
How much would $200 invested at 7% interest compounded annually be worth after 5 years? Round your answer to the nearest cent. Do not include units in your answer.
Answer provided by our tutors
P = $200
r = 0.07 or 7% annual interest rate
t = 5 years
n = 5 total number of compounding periods
A = the future value
A = P(1 + i)^n
A = 200(1 + 0.07)^5
A = 280.51