1. **Problem:** €500 is invested at 7% per annum compound interest. Find the amount after 5 years and the interest earned. 2. **Formula:** The compound interest amount is given by $$ A = P \left(1 + \frac{r}{100}\right)^n $$ where $P$ is the principal, $r$ is the annual interest rate, and $n$ is the number of years. 3. **Calculate the amount:** $$ A = 500 \left(1 + \frac{7}{100}\right)^5 = 500 \left(1.07\right)^5 $$ 4. Calculate $1.07^5$: $$ 1.07^5 = 1.07 \times 1.07 \times 1.07 \times 1.07 \times 1.07 = 1.4025517 $$ 5. Substitute back: $$ A = 500 \times 1.4025517 = 701.27585 $$ 6. **Calculate the interest:** $$ \text{Interest} = A - P = 701.27585 - 500 = 201.27585 $$ 7. **Final answers:** - Amount after 5 years: **701.28** (rounded to 2 decimal places) - Interest earned: **201.28** This means the investment grows to 701.28 after 5 years, earning 201.28 in interest.