When you set up the equation like a fraction, you can now cancel out like terms. (x+4) is in the denominator- as well as the numerator. They are the same in parentheses. So you can cancel. Once that's done, you'll be left with
\frac{3x+7}{x+2}
You cant simplify any further because there are no more (like groups) aka (common factors)
A=P(1+R)^n A=amount in 10 years P=original amount (200) R=rate(o.o6) n=number of times compunded(20) A=200x1.06^20 =641.4270944 Therefore Rachel will have 641.42 in 10 years