Answer:
To calculate the future value of the savings account after 12 years, we can use the formula for compound interest:
A = P(1 + r/n)^(nt)
Where:
A is the future value of the savings account
P is the principal amount (initial deposit)
r is the annual interest rate (expressed as a decimal)
n is the number of times that interest is compounded per year
t is the number of years
In this case, the principal amount (P) is $200, the annual interest rate (r) is 3.5% (or 0.035 as a decimal), and interest is compounded annually (n = 1). We need to calculate the future value (A) after 12 years (t = 12).
Plugging in these values into the formula, we get:
A = $200(1 + 0.035/1)^(1*12)
A = $200(1 + 0.035)^12
A = $200(1.035)^12
A ≈ $200(1.485947)
A ≈ $297.19
Therefore, the savings account would be worth approximately $297.19 after 12 years.
Explanation: