Answer:
$ 254.85
Step-by-step explanation:
Total amount invested = $ 560
Interest rate = r = 4.8% = 0.048
Time in years = t = 8 years
The formula for compound interest is:
Here,
A is the total amount accumulated after t years. P is the amount invested initially and n is the compounding periods per year. Since in this case compounding is done annually, n will be 1. Using the values in the above formula, we get:
Thus, the total amount accumulated after 8 years will be $ 814.85
The amount of interest earned will be:
Interest = Amount Accumulated - Principal Amount
Interest = $ 814.85 - $ 560 = $ 254.85
By the end of 8 years, $ 254.85 would be earned in interest.