Luke puts $200 into his account to use for school expenses. The account earns 2% interest, compounded annually. How much will be in the account after 7 years?

number of planning look foot equal to 200 in h8s account you should use compound formula ok

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