Determine the compound interest earned on
According to the Math Notes box from Lesson 8.1.3:
The formula for compound interest is:
total amount including previous interest earned, principal, interest rate for each compounding period, and number of time periods
Using this formula, substitute the given values to solve for the total amount.
After solving for the total amount with compound interest, find the difference between the new total amount and the original principal to find the compound interest earned.