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.