1. **State the problem:** We want to find the height of an apple tree after 2 years, given it grows at an average compound rate of 1.6% per month and is currently 1 meter tall. 2. **Formula used:** The compound growth formula is $$h = h_0 \times (1 + r)^t$$ where: - $h$ is the height after time $t$, - $h_0$ is the initial height, - $r$ is the growth rate per period (as a decimal), - $t$ is the number of periods. 3. **Identify values:** - Initial height $h_0 = 1$ meter, - Monthly growth rate $r = 1.6\% = 0.016$, - Time $t = 2$ years $= 2 \times 12 = 24$ months. 4. **Calculate:** $$h = 1 \times (1 + 0.016)^{24} = (1.016)^{24}$$ 5. **Evaluate:** Calculate $(1.016)^{24}$: $$ (1.016)^{24} \approx 1.438$$ 6. **Final answer:** The apple tree will be approximately $1.438$ meters tall after 2 years.