Invests K8000 for 5 years at 10%p.a. compound interest. Work out the interest earned at the end of 5 years?

To calculate the interest earned at the end of 5 years, we can use the formula for compound interest:

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

Where:
A = the amount of money accumulated after n years, including interest
P = the principal amount (initial investment)
r = the annual interest rate (in decimal form)
n = the number of times that interest is compounded per year
t = the number of years the money is invested for

In this case:
P = K8000
r = 0.10
n = 1 (compounded annually)
t = 5

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

Now, to calculate the interest earned:
Interest = A - P
Interest = K12884.08 - K8000
Interest = K4884.08

Therefore, the interest earned at the end of 5 years is K4884.08.

The formula for compound interest is:

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

where:

- A is the final amount
- P is the principal (initial investment)
- r is the annual interest rate (as a decimal)
- n is the number of times per year that the interest is compounded
- t is the number of years

In this case, we have:

- P = K8000
- r = 0.10 (10% as a decimal)
- n = 1 (compounded annually)
- t = 5

Plugging these values into the formula, we get:

A = 8000(1 + 0.10/1)^(1-5)
A = 8000(1.10)^5
A = 8000(1.61051)
A = K12884.08

Therefore, the interest earned at the end of 5 years is:

Interest = A - P
Interest = K12884.08 - K8000
Interest = K4884.08