Get the answers you need at Westonci.ca, where our expert community is always ready to help with accurate information. Get precise and detailed answers to your questions from a knowledgeable community of experts on our Q&A platform. Get precise and detailed answers to your questions from a knowledgeable community of experts on our Q&A platform.
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
We hope you found this helpful. Feel free to come back anytime for more accurate answers and updated information. We hope our answers were useful. Return anytime for more information and answers to any other questions you have. We're glad you visited Westonci.ca. Return anytime for updated answers from our knowledgeable team.
