You have just put $500 in an investment that offers an 8% annual yield,with interest compounded annually.Your total interest earned after two years will be

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Quizplus · Accepted Answer

The total amount after two years can be calculated using the formula for compound interest: A = P(1 + r)^n, where A is the amount after n years, P is the principal amount, r is the annual interest rate, and n is the number of years. Here, P = $500, r = 8% or 0.08, and n = 2. So, A = 500(1 + 0.08)^2 = 500(1.08)^2 = 500 * 1.1664 = $583.20. The total interest earned is the final amount minus the principal, which is $583.20 - $500 = $83.20.

You Have Just Put $500 in an Investment That Offers