An investment of $6,599.20 earns 4.2% interest compounded monthly over 7 years. Approximately how much interest is earned on the investment? a. $2,250.96 b. $4,308.21 c. $6,762.59 d. $8,850.20

a. $2,250.96

Step-by-step explanation:

First, you can determine the total value of the investment after 7 years by using the following formula:

F=P(1+(r/n))^nt

F= future value

P= present value

r= interest rate

n= number of times interest is applied per period

t= number of time periods

F= 6,599.20*(1+(0.042/12))^12*7

F=6,599.20*(1,0035)^84

F= 8,850.16

Then, you can subtract the initial value of the investment from the future value to find the interest earned:

$8,850.16-$6,599.20= $2,250.96

According to this, the interest that the investment earns is $2,250.96.

0.50 , 0.75

step-by-step explanation: