An employee saving for retirement invests $7,500 for 34 months at . How much interest will be earned on this investment? Round to the nearest cent.

To determine the interest earned on the investment, we need to know the interest rate and whether it is simple or compound interest. Since the interest rate is not provided, I'll assume it is simple interest for this calculation.

The formula for simple interest is:

$\text{Interest} = P \times r \times t$

where:

• $P$ is the principal amount ($7,500),
• $r$ is the annual interest rate (expressed as a decimal),
• $t$ is the time the money is invested for (in years).

First, convert the time from months to years:

$t = \frac{34 \text{ months}}{12 \text{ months/year}} = 2.8333 \text{ years}$

Next, we need the interest rate $r$. Since it is not provided, let's assume an interest rate of 5% (0.05 as a decimal) for the sake of this example.

Now, plug the values into the formula:

$\text{Interest} = 7500 \times 0.05 \times 2.8333$

$\text{Interest} = 7500 \times 0.05 \times 2.8333 = 7500 \times 0.141665 = 1062.49$

Therefore, the interest earned on the investment is approximately $1,062.49.