For the investment with interest compounded annually, find the final balance and the total interest earned.

$1200 for 2 years at 10%

A.
final balance: $1440
interest earned: $240

B.
final balance: $1452
interest earned: $252

C.
final balance: $1600
interest earned: $400

D.
final balance: $2400
interest earned: $1200

Question

For the investment with interest compounded annually, find the final balance and the total interest earned. 

$1200 for 2 years at 10%
 
 A.
final balance: $1440 
interest earned: $240
 
 B.
final balance: $1452 
interest earned: $252
 
 C.
final balance: $1600 
interest earned: $400
 
 D.
final balance: $2400 
interest earned: $1200

anonymous · Answer

Final balance will just be 1200 x 1.1^2
All of the answer choices have different "final balance" totals, so don't worry about interest earned.