3. find the compound amount. round to the nearest cent. amount = $7,200 rate = 4% compounded = annually time (years) = 8 4. find the interest earned. round to the nearest cent. amount = $7,200 rate = 4% compounded = annually time (years) = 8

3)
Principal Amount = P = $7200
Interest rate = r = 4% = 0.04
Time = t = 8 years

Formula for compounding is:



Using the values, we get:



Therefore, the compounded amount will be $9853.70 

4)
Principal Amount = P = $7200
Compounded Amount = A = $9853.70

Interest Earned = Compounded Amount - Principal Amount
So,
Interest Earned = 9853.70 - 7200 = $2653.70

Therefore, $2653.70 will be earned as interest over a period of 8 years.