Answer:
It will be worth $280.51.
Step-by-step explanation:
The compound interest formula is given by:
[tex]A = P(1 + \frac{r}{n})^{nt}[/tex]
Where A is the amount of money, P is the principal(the initial sum of money), r is the interest rate(as a decimal value), n is the number of times that interest is compounded per years and t is the time the money is invested or borrowed for, in years.
In this problem:
We want to find A, when [tex]P = 200, r = 0.07, n = 1, t = 5[/tex]
[tex]A = P(1 + \frac{r}{n})^{nt}[/tex]
[tex]A = 200*(1 + \frac{0.7}{1})^{1*5}[/tex]
[tex]A = 280.51[/tex]
It will be worth $280.51.
