SOLUTION: the formula for the simple interest earned on an investment is I=prt, where I is the interest earned,p is the principal, r is the interest rate, and t is the time in years. Assume

Question 333179: the formula for the simple interest earned on an investment is I=prt, where I is the interest earned,p is the principal, r is the interest rate, and t is the time in years. Assume that $5000 is invested at an annual interest rate of 8% and that interest is added to the principal at the end of the year.
find the amount of interest that will be earned each year for five years.
Answer by rfer(16322) (Show Source): You can put this solution on YOUR website!
A=5000(1+.08)^5
A=5000(1.08)^5
A=5000*1.46933
A=7346.66
7346.66-5000=2346.66
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