Question

An employee puts $5,000 in a retirement account that offers 9% interest compound 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?

Answer 1

$5000*(109/100)^5= total amount after 5 years

$5000*1.09^5

$7693=total amount after 5 years