To get the answer to this question is to simply take the 1.2% (Equals 0.012) and make it 1.012 since you're doing an increase percentage for a number. Any time you do an increase for a number by percentage, the first digit must be a 1. if the percentage equals to 0. for the first digit or 1 number higher.
Take 700 and increase it by 1.012 or 1.2%
Year 0: 700 * 1.012 = 708.4
Year 1: 708.4 * 1.012 = 716.9
Year 2: 716.9 * 1.012 = 725.50
Year 3: 725.50 * 1.012 = 734.20
Year 4: 734.20 * 1.012 = 743.02
Year 5: 743.02 * 1.012 = 751.36
Year 6: 751.36 * 1.012 = 760.95
Year 7: 760.95.
Your answer will be 760.95 after 7 years of a 1.2% income.
Hope this helps!
~ ShadowXReaper069