an investment of $8,350 earns 5.2% interest compounded monthly over 10 years. approximately how much…

Explanation:

Step1: Identify compound - interest formula

The compound - interest formula is $A = P(1+\frac{r}{n})^{nt}$, where $P$ is the principal amount, $r$ is the annual interest rate (in decimal form), $n$ is the number of times interest is compounded per year, and $t$ is the number of years. Here, $P=$8350$, $r = 0.052$, $n = 12$ (monthly compounding), and $t = 10$.

Step2: Calculate the value of $(1+\frac{r}{n})$

$\frac{r}{n}=\frac{0.052}{12}\approx0.004333$, then $1+\frac{r}{n}=1 + 0.004333=1.004333$.

Step3: Calculate the value of $nt$

$nt=12\times10 = 120$.

Step4: Calculate the final amount $A$

$A = 8350\times(1.004333)^{120}$. Using a calculator, $(1.004333)^{120}\approx1.6805$. So, $A=8350\times1.6805\approx14022$.

Step5: Calculate the interest earned

The interest earned $I=A - P$. So, $I = 14022-8350=$5672\approx$5679$.

Answer:

c. $$5,679$