Answer:
$220.50
Explanation:
The formula to compute the future value is shown below:
As we know that
Future value = Present value × (1 + interest rate)^number of years
where,
Present value = $200
Interest Rate = 5%
Number of years = 2 years
So, the future value
= $200 × (1 + 0.05)^2
= $200 × 1.1025
= $220.50
We simply applied the above formula so that the future value could come
