Final answer:
To calculate the interest earned by Silver & Co in 30 years, we can use the formula for compound interest. The amount accumulated after 30 years is approximately $3,248,489.24. Subtracting the principal, we find that the interest earned is $1,048,489.24.
Step-by-step explanation:
To calculate the interest that Silver & Co will have earned in 30 years, we can use the formula for compound interest: A = P(1 + r/n)^(nt), where A is the amount accumulated, P is the principal (monthly payment), r is the annual interest rate in decimal form (12% = 0.12), n is the number of times the interest is compounded per year, and t is the number of years.
In this case, the principal is $5,300, the annual interest rate is 12%, the interest is compounded monthly (n = 12), and the time period is 30 years (t = 30).
Using the formula, we have A = 5300(1 + 0.12/12)^(12*30). Evaluating this expression, we find A ≈ $3,248,489.24.
To calculate the interest earned, we subtract the principal from the amount accumulated: $3,248,489.24 - ($5,300 x 12 x 30) = $1,048,489.24.
Therefore, the correct answer is c) $1,048,489.24.