36.3k views
3 votes
An employee put $2,500.00 in a retirement account that offers 6% 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? O $750.00 O $3,250.00 $846.00 O $3,346.00

User Gyula
by
7.7k points

1 Answer

1 vote

we have


\begin{gathered} C=Ci(1+i)^n \\ C=2500(1+0.06)^5 \\ C=2500(1.06)^5 \\ C=3346 \end{gathered}

then, interest is


3346-2500=846

answer: $846.00

User Alan Evangelista
by
7.9k points

No related questions found

Welcome to QAmmunity.org, where you can ask questions and receive answers from other members of our community.

9.4m questions

12.2m answers

Categories