To find out how much Linda will have in 2 years, we can use the formula for compound interest:
A = P(1 + r/n)^(nt)
where:
A = the amount after time t
P = the principal amount (initial deposit)
r = the annual interest rate (as a decimal)
n = the number of times the interest is compounded per year
t = the time (in years)
In this case, P = $200, r = 0.05 (since the interest rate is 5%), n = 1 (since the interest is compounded annually), and t = 2. Plugging these values into the formula, we get:
A = 200(1 + 0.05/1)^(1*2)
A = 200(1.05)^2
A = 200(1.1025)
A = $220.50
Therefore, to the nearest cent, Linda will have $220.50 in 2 years.