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.