GMAT Quantitative Reasoning Practice Test 1

Here, it is enough to calculate the simple interest of $8\%$ per year.
$\mathrm{\$}2,400\times \frac{8}{100}\times 1=\mathrm{\$}192$. Since we are calculating as a compounded rate, the interest should be a bit higher or choice $\mathrm{\$}197$ as the correct answer.