Invested K8000 for 5 years at 10%.compound interests. Work out the interest earned for 5 years?

To calculate the interest earned for 5 years on an investment of K8000 at 10% compound interest, we can use the formula for compound interest:

A = P(1 + r/n)^(nt)

Where:
A = the future value of the investment
P = the principal amount (K8000)
r = the annual interest rate (10% or 0.10)
n = the number of times the interest is compounded per year (assuming it is compounded annually, n = 1)
t = the number of years the money is invested for (5 years)

Plugging in the values:

A = K8000(1 + 0.10/1)^(1*5)
A = K8000(1.10)^5
A = K8000(1.61051)
A = K12884.08

Now, to calculate the interest earned, we subtract the principal amount from the future value:

Interest earned = K12884.08 - K8000
Interest earned = K4884.08

Therefore, the interest earned for 5 years on an investment of K8000 at 10% compound interest is K4884.08.

Formula for Compound Interest:

P(1 + r/n)^(nt)

where:
P = Principal (initial investment)
r = Annual interest rate (as a decimal)
n = Number of times interest is compounded per year
t = Number of years

Given:
P = K8000
r = 10% = 0.1
n = 1 (once per year)
t = 5

Calculation:

K8000(1 + 0.1/1)^(1 - 5)
= K8000(1.1)^5
= K8000(1.61051)
= K12884.08

Interest Earned:

Interest Earned = Final Amount - Initial Investment
= K12884.08 - K8000
= K4884.08

Therefore, the interest earned for 5 years is K4884.08.