Kathleen O. answered • 04/29/20

Editor/Researcher, Experienced Math/English Teacher, Ivy League

**simple interest formula**: A = P(1 + rt) where P is the Principal **amount** of money to be invested at an **Interest** Rate R% per period for t Number of Time Periods.

Easy, right? P = 8000 r=3.5. t=8.

Just plug it into the formula.

For **compounding**, the formula changes just a bit, **n** = the number of times that interest is compounded per unit t. So in this problem, compounding annually, n=12

Compounded interest only (without principal): P (1 + r/n) ^{(nt)} - P

For **continuous**,it’s compounded on the initial principal as well as all interest earned, so the principal will receive interest continously.

Start there.

Is it a take home? If you feel desperate I can try to help you at a low rate. Finance isn’t in my profile but I did my Masters at Columbia in international finance, And I worked in an investment bank. This looks very basic so I think I can help you.