Answer:
1728
Step-by-step explanation:
1200 borrowed for 2 years at 20% compounded annually ;
Using the compound interest formula :
A = P(1 + r/n)^nt
P = 1200 = principal
Time, t = 2 years
Rate, r = 20% = 0.2
A = 1200(1 + 0.2)^2
A = 1200(1.2)^2
A = 1200 * 1.44
A = 1728
Final amount to be repayed = 1728
