ECONOMICS
COMPOUND INTEREST
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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An employee put $5, 000.00 in a retirement account that offers 9% interest compounded annually. The employee makes no additional deposits or withdrawals. Which amount is closest to the interest the employee will have earned at the end of 5 years?
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$ 229.09
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$450.00
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$ 2, 250.00
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$ 2, 693.12
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Explanation:
Detailed explanation-1: -The rate of compound interest was 9% annually. Thus, the amount $2693.12 is closest to the interest the employee will have earned at the end of 5 years. Thus, Option D: $2693.12 is correct.
There is 1 question to complete.