Answer:
$2,693.12 will the employee have eared at the end of 5 years.
Step-by-step explanation:
The formula of compound interest:
= A-P
A= The amount in the account after n years
P= Principal
r= rate of interest annually
n= time in years.
An employee put $5,000 in retirement account that offer 9% interest compounded annually.
Here P=$5,000, r=9%=0.09, n= 5 years
=$7,693.12
The interest = A-P
=$(7,693.12-5,000)
=$2,693.12
$2,693.12 will the employee have eared at the end of 5 years.