Answer: the amount in the account after 3 years is $245
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 = 7% = 7/100 = 0.07
n = 1 because it was compounded once in a year.
t = 3 years
Therefore,
A = 200(1+0.07/1)^1 × 3
A = 200(1+0.07)^3
A = 200(1.07)^3
A = $245
