Final answer:
To validate the statement about the interest earned, we apply the compound interest formula to $7500 at 3.8% compounded monthly over 4 years. The calculation will show whether the final interest amount exceeds $1229.11, confirming if the statement is true or false.
Step-by-step explanation:
To determine the accuracy of the statement regarding the interest earned on a $7500 investment at 3.8% annually compounded monthly, we should use the formula for compound interest: A = P(1 + r/n)^(nt), where A is the amount of money accumulated after n years, including interest, P is the principal amount (the initial amount of money), r is the annual interest rate (decimal), n is the number of times that interest is compounded per year, and t is the time the money is invested for in years.In this case, to find out if the statement is true or false, we would calculate it as follows: A = 7500(1 + 0.038/12)^(12×4). If this calculation yields a final amount minus the principal greater than $1229.11, the statement would be true; otherwise, it would be false. Applying this formula should give us the correct answer.