Asked by Lyla

Mark borrowed $200 at a 12% compound interest for two years. If he makes no payments, how much will he owe at the end of the second year?

A: $48.00**
B: $50.88
C: $26.88
D: $24.00
Answered by scott
compound means that in the 2nd year, interest is charged on the 1st year's interest

he "owes" $200 plus the accumulated interest

the answer choices are only the interest
Answered by Lyla
well I did some work and the first years interest would be $224, so I guess add another $24 dollars, so that would be $48.00? So I was correct?
Answered by scott
did you read the "interest on the interest" part of the response?
Answered by Reiny
amount after 2 years = 200(1.12)^2 = $250.88
So the interest earned is $50.88 , which is B
Answered by weirdo
please dont write incorrect answers
Answered by zannex
i am drug
Answered by Codeine
me too!
Answered by zannex
ok bye
Answered by Codeine
k bye
Answered by Um, who knows?
I have no clue what the answer is. Some say B and some say A, what is it?
Answered by Unknown
Its D
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