The savings account is an illustration of compound interest and the future amount is $283.81
How to determine the future amount?
The given parameters are:
Principal, P = 200
Rate, r = 5%
Time, t = 7
The equation of the future amount is given as:
[tex]A = Pe^{rt}[/tex]
So, we have:
[tex]A = 200 * e^{5\% * 7}[/tex]
Evaluate
A = 283.81
Hence, the future amount is $283.81
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