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Lina goes to another bank that offers her 7% interest on her $200. After 1 year, how much would she have earned?

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This equation can be solved using the exponential growth formula a(1 + r)^t, where as a is the starting amount, r is the decimal, and t is the interval.

Firstly, input the number: 200(1 + r)^t
Then, convert 7% into a decimal.
7/100 = 0.07
Finally, express the interval. This would be 1 year of waiting.

The final equation is 200(1 + 0.07)^1, which will be simplified as
200(1.07)^1 = 214.
She would have earned 214 dollars.
User JeJo
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