$8000 at 5.5% compounded monthly 5 years Find the amount of compound interest earned

Compound Interest Formula:

A = P \left(1 + \frac{r}{n}\right)^{nt}

Substitute the values into the formula:

A = 8000 \left(1 + \frac{0.055}{12}\right)^{12 \times 5}

Simplify inside the parentheses:

A = 8000 \left(1 + 0.0045833\right)^{60}

Calculate the exponent:

A ≈ 8000 \left(1.0045833\right)^{60}

Find the total amount A :

A≈10525.63

Subtract the principal to get the interest:

10525.63-8000=2525.63

Answer:

2525.63