Question

Having $ 200$200 today is equivalent to having what amount in one​ year?

Answer 1

Suppose the interest rate is 4%, the equivalent of $200 in one year will be:
A=P(1+r/100)^n
where:
p=principle amount
r=rate
n=time
Hence the amount in 1 year will be:
A=200(1+4/100)^1
A=$208
Therefore $200 today is equivalent of $208 in 1 year.