The formula to find compound interest is A = P ( 1 + r/n )^nt Use this to solve your problem. A = 5,000 ( 1 + 0.08/1 )^1•2 A = 5,000 • 1.1664 A = 5,832
Now this question is only asking about the interest gained. To find this, subtract the original amount from the new amount. 5,832 - 5,000 = 832 Your answer is $832
