Apply the compound interest formula:
A = P (1 + r/n) ^nt
Where:
A = future value of investment ( principal + interest)
P = Principal amount
r = Nominal interest rate ( decimal form = 4.5/100= 0.045)
n= number of compounding periods per year ( 12 )
t= years
Replacing:
A = 200 ( 1 + 0.045/12) ^12 * 5
A = 200 ( 1.00375)^60
A = $250.35
