Not yet answered Points out of 10.00 p Flag question Mark invests \( \$ 7,000 \), at \( 7 \% \) interest, compounded annually for 22 years. Calculate the t. compound interest for his investment. Select one: a. \( \$ 31,012.80 \) b. \( \$ 8,753.25 \) c. \( \$ 24,012.80 \) d. \( \$ 15,655.23 \) Previous page

To calculate the compound interest earned on Mark’s investment, you can use the formula for compound interest: \[ A = P(1 + r)^n \] Where: - \( A \) is the amount of money accumulated after n years, including interest. - \( P \) is the principal amount (the initial amount of money). - \( r \) is the annual interest rate (decimal). - \( n \) is the number of years the money is invested for. Plugging in the values: \[ A = 7000(1 + 0.07)^{22} \] Calculating gives \( A \approx 31,012.80 \). The compound interest can then be found by subtracting the principal from the total amount: \[ \text{Compound Interest} = A - P = 31,012.80 - 7,000 = 24,012.80 \]. So the answer is c. \( \$ 24,012.80 \). To add some fun context, did you know that the concept of compound interest was famously highlighted by Albert Einstein, who allegedly called it the "eighth wonder of the world"? He suggested that those who understand it earn it, while those who don't pay it! It’s like money making money—all while you kick back and relax! In the real world, compound interest works magic especially in savings accounts and for investors. For example, if you start investing early, the interest you earn compounds over time, leading to substantial growth of your wealth. It’s a powerful reason why financial experts advise starting to save and invest as early as possible.