Nicolas has $6,500 to deposit into an account which earns 3.25% interest compounded annually. How interest will he have earned at the end of 8 years.

The interest earned at the end of 8 years is $1895.25

Step-by-step explanation:

Applying the compound interest formula we have A = P (1+r) ^t

A, final amount = ?

P initial principal balance = $6,500

r, interest rate = 3.25%

t, number of time periods = 8 years

Substituting our given data we

A = 6500 (1+3.25/100) ^8

A=6500 (1+0.0325) ^8

A=6500 (1.0325) ^8

A=6500*1.2915775353

A=8395.25

Interest = final amount - principal

Interest = 8395.25-6500

Interest = $1895.25