How much would $200 invested at 6% interest compounded annually be worth after 5 years? Round your answer to the nearest cent. Do not include units in your answer.

The answer is 267.65

A = P (1 + r/n) ⁿˣ

A - the future value

P - the principal

r - the annual rate

n - the number of compoundings per year

x - the period of time

We know:

A = ?

P = $200

r = 6% = 6%/100% = 0.06

n = 1 (annualy means once per year)

x = 5

A = P (1 + r/n) ⁿˣ

A = 200 * (1 + 0.06/1) ¹*⁵

A = 200 * (1 + 0.06) ⁵

A = 200 * (1.06) ⁵

A = 267.65