ANSWER
Step-by-step explanation
We want to find the total amount after 2 years.
To do this, we apply the formula for compound amount:
where P = principal
R = rate
t = amount of time
To do this, we have from the question that:
P = $1,000
R = 14%
T = 2 years
Therefore, the compound amount is:
To find the compount interest, subtract the principal from the compound amount: