Answer:
Balance after 2 years=2,792
Step-by-step explanation:
To calculate the total amount Michael will have after 2 years, we can express this as;
Total amount=Initial investment+Annual interest
For the first year;
Initial investment=1800
Annual interest=496
replacing;
Total amount=(1,800+496)=2,296
For the second year;
Initial investment=2,296
Annual interest=496
replacing;
Total amount after 2 years=(2,296+496)=2,792
Balance after 2 years=2,792
