$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

After one year the new principal is $1000(1.08) = $1080. The second-year interest is 8% of $1080: 0.08 × 1080 = $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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$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) $

All Answers 1

Submit Your Answer

$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)
$