Question

What is the answer. Do not need to explain.

Answer 1

1200(.20)=240
1200+240=1440

Answer 2

Add 5% of what the balance is every year for four years.

5% of $1200 is $60.
5% of $1260 is $63.
5% of $1323 is $66.15.
5% of $1389.15 is $69.45. So the final balance is $1458.45.