an investment of $6,599.20 earns 4.2% compounded monthly over 7 years how much interest is earned on the investment

Answer:Interest earned on the investment is; $2237.31254875Step-by-step explanation:Given:  Principal (P) = $6, 599.20  r= 4.2% and t = 7 years.Formula for annual compound interest, including principal sum is:
[tex]A = P(1+\frac{r}{100n})^{nt}[/tex]             .....[1]where ;A represents the total amount , including interest.P represents the initial depositsr represents the rate of interestt represents the number of times that the interest is compounded per yearn represents the number time that interest is compounded per yearHere, n = 12therefore,Substituting the values of P= $6, 599.20  r= 4.2% and t = 7 years in equation [1];[tex]A = 6599.20(1+\frac{4.2}{1200})^{7 \times 12} = 6559.20(1+0.0035)^{84}[/tex]Simplify:A = $8796.51254875We have to find the interest is earned on the investment;Use the formula:A = I + P orI = A - Pwhere, I represents the interest earned on the investment;we have;I = 8796.51254875 - 6559.20 = $2237.31254875Therefore, the interest earned on the investment is; $2237.31254875