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melamori03 [73]
3 years ago
14

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?
A) $229.09
B) $450.00
C) $2,250.00
D) $2,693.12
Mathematics
2 answers:
Dmitry [639]3 years ago
7 0

Answer:

D) $2693.12

Step-by-step explanation:

The account balance is multiplied by 1.09 each year, so at the end of 5 years, it has been multiplied by 1.53862395....

After subtracting the initial deposit amount, the remainder is the interest earned:

... $5000×(1.53862395 -1) = $5000×0.53862395 ≈ $2693.12

lyudmila [28]3 years ago
7 0

Answer:

D is the answer

Step-by-step explanation:

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