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Sagot :
The interest earned in the first year is $8.
The interest earned in the second year is $8.64.
What is compound interest?
When an amount of money earns compound interest, both the amount deposited and the interest earned earn an interest.
The formula used to represent compound interest is:
Future value - present value
The formula for calculating future value:
FV = P (1 + r)^n
- FV = Future value
- P = Present value
- R = interest rate
- N = number of years
$100 x 1.08 = $108
Interest in the first year = $108 - $100 = $8
Interest in the second year = $116.64 - $108 = %8.64
To learn more about compound interest, please check: https://brainly.com/question/26367706
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