Answer:
Nathan will have $220.5 at the end of the two years.
Step-by-step explanation:
We are given the following in the question:
P = $200
r = 5% = 0.05
t = 2 years
The compound interest is given by:
[tex]A = p\bigg(1+\dfrac{r}{n}\bigg)^{nt}[/tex]
where A is the amount, p is the principal, r is the interest rate, t is the time in years and n is the nature of compound interest.
Putting values, we get,
For n = 1
[tex]A = 200\bigg(1+\dfrac{0.05}{1}\bigg)^2\\\\A = \$220.5[/tex]
Thus, Nathan will have $220.5 at the end of the two years.
