Answer:
I₂ = 757.12$ (after two years)
Step-by-step explanation:
When the realized interest is added to the basic investment at the end of each year, we use the following formula:
I₂ = I ( 1 + (r/100))² for two years
I₂ = 700 ( 1 + (4/100))² = 700 · 1.04² = 700 · 1.0816 = 757.12$
I₂ = 757.12$
God with you!!!
