Answer:
A = $100(1.12)^2
Step-by-step explanation:
The standard formula for compound interest is given as;
A = P(1+r/n)^(nt) .....1
Where;
A = final amount/value
P = initial amount/value (principal)
r = rate yearly
n = number of times compounded yearly.
t = time of investment in years
For this case;
P = $100
t = 2years
n = 1
r = 12% = 0.12
Substituting the values, we have;
A = $100(1+0.12)^(2)
A = $100(1.12)^2
