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
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
11 answers
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?
did you read the "interest on the interest" part of the response?
amount after 2 years = 200(1.12)^2 = $250.88
So the interest earned is $50.88 , which is B
So the interest earned is $50.88 , which is B
please dont write incorrect answers
i am drug
me too!
ok bye
k bye
I have no clue what the answer is. Some say B and some say A, what is it?
Its D