Answer:
The interest earned at the end of 8 years is $1895.25
Step-by-step explanation:
Applying the compound interest formula we have A = P(1+r)^t
A, final amount =?
P initial principal balance= $6,500
r, interest rate =3.25%
t, number of time periods =8 years
Substituting our given data we
A= 6500(1+3.25/100)^8
A=6500(1+0.0325)^8
A=6500(1.0325)^8
A=6500*1.2915775353
A=8395.25
Interest = final amount - principal
Interest =8395.25-6500
Interest = $1895.25
