You have$560 in an account which pays 4.8% compounded annually. If you invest your money for 8 years, then how many dollars of interest will you earn by the end of term

Answer:$ 254.85Step-by-step explanation:Total amount invested = $ 560Interest rate = r = 4.8% = 0.048Time in years = t = 8 yearsThe formula for compound interest is:[tex]A =P(1+\frac{r}{n})^{nt}[/tex]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:[tex]A=560(1+\frac{0.048}{1})^{8} = \$ 814.85[/tex]Thus, the total amount accumulated after 8 years will be $ 814.85The amount of interest earned will be:Interest = Amount Accumulated - Principal AmountInterest = $ 814.85 - $ 560 = $ 254.85By the end of 8 years, $ 254.85 would be earned in interest.