Question 9
$0 / 2$ pts $\bigcirc_{3} \rightleftarrows$
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How much interest will be earned if $\$ 8,000.00$ is invested for 7 years at $5 \%$ compounded annual?
HINT: You know how to find the future valun of the investment at the end of the time period. To find the amount of interest earned, just subtract the PRINCIPAL from the future value.

You would earn $\$$ in interest. (Round to 2 decimal places.)
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Step 1 ：Given that the principal amount (P) is \$8000, the annual interest rate (r) is 5% or 0.05 (in decimal), the number of times that interest is compounded per year (n) is 1 (since it's compounded annually), and the time the money is invested for in years (t) is 7 years.

Step 2 ：First, we calculate the amount of money accumulated after 7 years, including interest (A) using the formula for compound interest: \(A = P(1 + r/n)^{nt}\).

Step 3 ：Substitute the given values into the formula: \(A = 8000(1 + 0.05/1)^{1*7}\).

Step 4 ：After calculating, we get \(A = 11256.80\).

Step 5 ：To find the amount of interest earned, we subtract the principal P from A: \(interest\_earned = A - P = 11256.80 - 8000\).

Step 6 ：After calculating, we get \(interest\_earned = 3256.80\).

Step 7 ：\(\boxed{3256.80}\) is the amount of interest earned from the investment.