Answer:
The interest is $384 and the amount is $484.
Step-by-step explanation:
STEP 1: Convert interest rate of 16% per month into rate per year. rate per year = rate per month⋅12=16%⋅12=192% STEP 2: Find an interest by using the formula I=P⋅i⋅t, where I is interest, P is total principal, i is rate of interest per year, and t is total time in years. In this example P = $100, i = 192% and t = 2 years, so
III=P⋅i⋅t=100⋅1.92⋅2=384 STEP 3: Find an amount by using the formula A=P+I.
Since P = $100 and I = $384 we have
AAA=P+I=100+384=484
