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

Answer 1

ten percent a year? where can i get that?!

Answer 2

in one year you would have
\[1200(1.1)\] in two years it would be
\[1200(1.1)(1.1)=1200(1.1)^2\]

Answer 3

http://www.wolframalpha.com/input/?i=1200%281.1%29^2