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An employee put $7,000.00 in a retirement account that offers 5% interest compounded annually. The employee makes no additional

deposits or withdrawals. Which amount is closest to the interest the employees will have earned at the end of 4 years?
A
x B $7,350.00
1x C
$1,400.00
D
$1,508 54
$8,508.54

User Kkakroo
by
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1 Answer

4 votes

Answer:

$1508.54

Explanation:

A = p(1 +
(r)/(n))^nt

A = 7000(1+ .05)^4

A = 7000(1.05)^4

A = 8508.54 This is the total amount (principle and interest

Subtract out the principle

8508.54 - 7000 = 1508.54

User Chavada Viki
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