Question

An investment of $9,875 earns 4.8% interest compounded monthly over 12 years. approximately how much interest is earned on the investment?

a. $4,740
b. $7,458
c. $7,672
d. $17,567

Answer 1

On E, the correct answer is C.

I just took the test :)

Answer 2

A = 9,875 (1 + 0.048/12)^ 12(12)

A = $ 15,547

The amount of interest earned on investment = $ 15,547 - $ 9,875
= $ 7,672

Hope this helps