To find the power dissipated by an 8A toaster connected to a 120V source, the correct formula to use is P = V * I. Given the voltage (V) is 120V and the current (I) is 8A, the power can be calculated as P = 120V * 8A. There was some confusion regarding the use of the equation P = V^2 / R, but it was clarified that resistance (R) is not needed for this calculation. Ultimately, the discussion emphasizes the importance of using the correct power formula. Understanding these equations is crucial for solving similar electrical problems.