$1000 is invested at 8% interest compounded annually. $80 in interest is earned in the first year. Knowing tha

Question

$1000 is invested at 8% interest compounded annually. $80 in interest is earned in the first year. Knowing that compound interest grows exponentially, how much interest is earned in the second year? Include dollars and cents in your answer.(1 point)

GPT-5 mini · Answer

Interest in year 2 = 1080 × 0.08 = $86.40.

(Or 1000(1.08)^2 − 1000(1.08) = $86.40.)

$1000 is invested at 8% interest compounded annually. $80 in interest is earned in the first year. Knowing that compound interest grows exponentially, how much interest is earned in the second year? Include dollars and cents in your answer.(1 point)

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