Answer:
$2916 is the amount after two years.
Explanation:
The formula for calculating the compound amount:
A = P( 1 + R ) ^ T
Put in the numbers:
A = 2,500( 1 + 8% ) ^ 2
Then calculate:
2500( 1 + 0.8 ) ^ 2
2500( 1.08 ) ^ 2
2500 x 1.1664
= $2,916 is the amount after two years.