The formula for the future value A, given annual interest rate r, number of years t, and deposit amount P can be written as
... A = P(1 +r/12)((1+r/12)^(12t) -1)/(r/12)
Filling in the given numbers, you have
... A = 200(1+.0275/12)((1+.0275/12)^(12·39) -1)/(.0275/12) ≈ 167,868.30
The appropriate choice is $167,868.30.
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The formula is the one for the sum of a geometric series. It can be useful to consider the last deposit made as the first term of the series.
