Final answer:
To calculate the amount owed at the end of 2 years if $2000 is borrowed at 8% interest compounded yearly, use the formula for compound interest. The correct amount owed is $2320.
Step-by-step explanation:
To calculate the amount owed at the end of 2 years if $2000 is borrowed at 8% interest compounded yearly, we can use the formula for compound interest:
Final Amount = Principal x (1 + Interest Rate)^Time
Plugging in the values:
Final Amount = 2000 x (1 + 0.08)^2 = 2000 x 1.1664 = $2332.80
Therefore, the correct option is $2320 (option B).