19. an employee put $5,000.00 in a retirement account that offers 9% interest compounded annually. the…

19. an employee put $5,000.00 in a retirement account that offers 9% interest compounded annually. the employee makes no additional deposits or withdrawals. which amount is closest to the interest the employee will have earned at the end of 5 years? $229.09 $450.00 $2,250.00 $2,693.12 clear all

19. an employee put $5,000.00 in a retirement account that offers 9% interest compounded annually. the employee makes no additional deposits or withdrawals. which amount is closest to the interest the employee will have earned at the end of 5 years? $229.09 $450.00 $2,250.00 $2,693.12 clear all

Answer

Explanation:

Step1: Identify compound - interest formula

The compound - interest formula is $A = P(1 + r)^t$, where $P$ is the principal amount, $r$ is the annual interest rate (in decimal form), and $t$ is the number of years. Here, $P=$5000$, $r = 0.09$, and $t = 5$.

Step2: Calculate the amount $A$

$A=5000\times(1 + 0.09)^5=5000\times(1.09)^5$. $(1.09)^5=1.09\times1.09\times1.09\times1.09\times1.09\approx1.53862395$. $A = 5000\times1.53862395=$7693.12$.

Step3: Calculate the interest earned

The interest earned $I=A - P$. $I=7693.12−5000=$2693.12$.

Answer:

$2,693.12$