Answer:
The interest the employee will have earned at the end of 5 years is $ 2693.12 .
Option (D) is correct.
Step-by-step explanation:
Formula
[tex]Amount = P(1 + r)^{t}[/tex]
Where P is the principle , r is the rate of interest in the decimal form and t is the time .
As given
An employee put $5,000.00 in a retirement account that offers 9% interest compounded annually for 5 years .
P = $ 5000
9% is written in the decimal form.
[tex]= \frac{9}{100}[/tex]
= 0.09
r = 0.09
t = 5 years
Putting all the values in the formula
[tex]Amount = 5000(1 +0.09)^{5}[/tex]
[tex]Amount = 5000(1.09)^{5}[/tex]
[tex]Amount= 5000\times 1.53862 (Approx)[/tex]
Amount = $7693.12
As
Amount = Principle + Interest
Putting all the values in the above
$7693.12 =$5000 + Interest
Interest = $7693.12 - $5000
= $ 2693.12
Therefore the interest the employee will have earned at the end of 5 years is $ 2693.12 .
Option (D) is correct.
