### Home > CC3MN > Chapter 8 > Lesson 8.2.1 > Problem8-52

8-52.

Determine the compound interest earned on $220$ invested at $3.25\%$ compounded annually for $6$ years.

According to the Math Notes box from Lesson 8.1.3:

The formula for compound interest is: $A=P(1+r)^n$

Where:

• $A=$ total amount including previous interest earned,
$P=$ principal,
$r=$ interest rate for each compounding period, and
$n\ =\$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.

$46.54$