10
QuizMultiple Choice

Compound Interest — Test

Question 10 • Academy- Financial Algebra A 27

An investment of $8,350 earns 5.2% interest compounded monthly over 10 years. Approximately how much interest is earned on the investment?

Answer
A
$4,342
B
$5,513
C
$5,679
D
$13,863

Explanation

Use the compound-interest formula: the amount after 10 years is $8,350 × (1 + 0.052/12)^(12 × 10), which is approximately $14,029. Subtract the original $8,350 investment to find the interest: about $5,679. Therefore, the answer is choice C, $5,679.

AI-written and checked against the verified answer.

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