D is corrent. The requirement is to calculate the amount of interest earning for year 2. This answer is correct because the answer is equal to $864.00 [($10,000 × 1.08) × 08].
A is incorrect because it is the result of an inaccurate computation of interest.
B is incorrect because that is the amount of interest for the first year ($10,000 × .08).
A is incorrect because it is the result of an inaccurate computation of interest.
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