Answer:
$1,296
Explanation:
To get the total amount he earned, we calculate the simple interest the first and compound interest on the second investment
For the first;
I = PRT/100
Where I = the simple interest
P is the amount invested called the principal
R is the yield percentage called the rate
T is time frame of investment
For the first investment:
I = (8,000 * 6 * 1)/100 = $480
For the second investment
A = P(1 + R/n)^nt
A is amount
P is principal
R is rate
n is number of times, 2 in this case since it is semi annually
t is time, 1 year in this case
A = 10,000(1 + 0.08/2)^2
A= $10,816
Interest here is A - P
The interest earned is thus 10,816 - 10,000 = $816
Total amount of interest earned is thus $816 + $480 = $1,296
