Question

a deposit of $2000 earns 8 annual interest. find the amount in the account at the end of 4 years and the amount of interest earned during the 4 years if the interest is compounded

Answer 1

The yearly multiplier is 1.08 (asssuming yearly compounding), so at the end of 4 years, the account balance will be
$2000×1.08⁴ ≈ $2720.98

The amount of interest earned is the increase from the deposit amount:
$2720.98 - 2000.00 = $720.98