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What is the compound interest on $400 at a 8% annual rate compounded annually for two years?

A$32.00
B$34.56
C$64.00
D$66.56

Verified Answer :

A= P(1 +r/n)^n(t)
= 400 (1 + .08/1)1(2)
= 466.56

466.56 - 400 = 66.56

answer is D. $66.56

it is simply c because 8% annual of £400 is £32 then times that by 2 for 2 years is £64. if you want my working out...don't hesitate to ask and I'll comment them to you..hope I helped

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