Anew savings account starts $700 and increases at 1.2% yearly; 7 years

To get the answer to this question is to simply take the 1.2% (Equals 0.012) and make it 1.012 since you're doing an increase percentage for a number. Any time you do an increase for a number by percentage, the first digit must be a 1. if the percentage equals to 0. for the first digit or 1 number higher. 

Take 700 and increase it by 1.012 or 1.2% 

Year 0: 700 * 1.012 = 708.4 
Year 1: 708.4 * 1.012 = 716.9 
Year 2: 716.9 * 1.012 = 725.50 
Year 3: 725.50 * 1.012 = 734.20 
Year 4: 734.20 * 1.012 = 743.02 
Year 5: 743.02 * 1.012 = 751.36 
Year 6: 751.36 * 1.012 = 760.95 
Year 7: 760.95. 

Your answer will be 760.95 after 7 years of a 1.2% income. 

Hope this helps! 

~ ShadowXReaper069