I need to know how to breakdown this equation. It's a multiple choice on a practice test and I am stuck on percentages. I did 1200x.40=480.00 but that is not one of my answer choices. Please give detailed help

This is a compound interest problem. The formula is:

A = P (1 + r/n)^(nt) where:

t is the time in years,

n is the number of times in each year interest is calculated,

r is the interest rate,

P is the original amount (Principal), and

A is the amount after t years.

In this case:

t = 2 years,

n = 1 time each year,

r = -20% = -0.2,

P = $1200, and

A = 1200 (1 - 0.2)^2

n = 1 time each year,

r = -20% = -0.2,

P = $1200, and

A = 1200 (1 - 0.2)^2

A = 1200 (0.8)^2

A = 1200 (0.64)

A = 12 * 64 = 640 + 128

A = $768