Compound interest formuae :
A = P ( 1+r/100)^ n or A = P( 1+i)^n or A = P ((1 + i )^n -1 )/i
we will use the highlighted formular due to compounded yearly statement on the question:
where A = Accumulated amount;
P = original amount invested/ (borrowed )
n = number of years
r = interest rate as a percentage
i = r/100
Answer to (a )
A = P ((1 + i )^n -1 )/i
where n = 10; i = 8/100 =0.08 ; P = 1000
A = 1000 ( 1 + (8/100))^10 -1)/ 0. 08
A =1000 ( 14.48)
A =$14486.56
b. 1000 X 10 = $12000
c. you earned interest of $14486 - $12000 = $2486
