Find the compound interest: Principle 2000, rate 16%, compounded annually, time, 2 years

Question

anonymous · Answer

not 100% sure about the answer, but it would be something along the line of
2000*(0.16) + (2000*1.16)*(0.16) to get the total amount of interest at the end of 2 years - the first term would determine 16% interest at the end of first year.  Second term would determine total amount owed at the end of first year including the interest and determine the interest from that

tad1 · Answer

i= ert

anonymous · Answer

btw, do you happened to have a formula given with this problem?

anonymous · Answer

I only have the answers, 691.20, 2,264.52, 640.00, 2,691.20

anonymous · Answer

do you have to determine just the interest? or total amount owed at the end of 2 year period?

anonymous · Answer

total owed at the end of 2 years

anonymous · Answer

also i found this equation online, this should be helpful to you:
$$A = P(1+(r/n))^{nt}$$
where A is total amount owed at the end of period,
r is annual interest rate (=0.16)
n is number of times interest compounds per year ( = 1)
t is number of years

anonymous · Answer

thanks

anonymous · Answer

awesome  -  glad to be of any help :)