Answer: $230 will be in the account after 7 years.
Step-by-step explanation:
We would apply the formula for determining compound interest which is expressed as
A = P(1+r/n)^nt
Where
A = total amount in the account at the end of t years
r represents the interest rate.
n represents the periodic interval at which it was compounded.
P represents the principal or initial amount deposited
From the information given,
P = 200
r = 2% = 2/100 = 0.02
n = 1 because it is compounded once in a year.
t = 7 years
Therefore,.
A = 200(1+0.02/1)^1 × 7
A = 200(1.02)^7
A = $230
