Final answer:
The student's question relates to the calculation of the future value of an annuity with annual deposits of $5,000 at a 9% interest rate. The correct answer, given the choices, is approximately $29,924.
Step-by-step explanation:
The student is asking about the future value of an annuity due to regular deposits made into a money market account earning a 9% interest rate.
This is a finance problem that involves the future value of an annuity formula, where a fixed amount is deposited regularly over a certain period of time. Since the problem states that $5,000 is deposited annually for 5 years, we can calculate the total amount accumulated using the annuity formula:
Future Value of Annuity (FVA) = Pmt × {[(1 + r)n - 1] / r}
Where Pmt is the annual payment ($5,000), r is the interest rate per period (which is 0.09 here), and n is the number of payments (which is 5).
Calculating it: FVA = $5,000 × {[(1 + 0.09)5 - 1] / 0.09}
After computing the values, the answer turns out to be approximately $29,000, making the correct option from the given choices $29,924.