Answer
(a) After two years, there will be \$9528.13 in the account.
(b) The interest earned is \$1528.13
Work Step by Step
(a) We can use this formula:
$A = P~(1+\frac{r}{n})^{nt}$
$A$ is the final amount in the account
$P$ is the principal (the amount of money invested)
$r$ is the interest rate
$n$ is the number of times per year the interest is compounded
$t$ is the number of years
$A = P~(1+\frac{r}{n})^{nt}$
$A = (\$8,000)~(1+0.06)^{3}$
$A = \$9528.13$
After three years, there will be \$9528.13 in the account.
(b) We can find the interest earned.
$A - P = \$9528.13 - \$8000 = \$1528.13$
The interest earned is \$1528.13
