Question 1012453
At the end of Year 1, she had 100% principal + 2% interest,
or 102% of $400:
.
(1.02)($400)=$408
.
Take $408 as the new principal for Year 2. At the end of 
the year, she has 102% of $408:
.
(1.02)($408)=$416.16
.
ANSWER: At the end of year two, her balance will be $416.16.