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The problem states:

- An employee puts $5,000 into a retirement account offering **9% interest compounded annually**.
- No additional deposits or withdrawals are made.
- The question asks for the **interest earned at the end of 5 years**.

This is a compound interest problem. The formula for compound interest is:

\[
A = P \left(1 + \frac{r}{n}\right)^{nt}
\]

Where:
- $A$ is the amount of money accumulated after $t$ years (including interest).
- $P$ is the principal amount (initial investment), $5,000.
- $r$ is the annual interest rate (9% or 0.09).
- $n$ is the number of times the interest is compounded per year (since it’s compounded annually, $n = 1$).
- $t$ is the time the money is invested for (5 years).

The interest earned is calculated as:

\[
\text{Interest} = A - P
\]

Let's calculate the interest earned.The interest earned at the end of 5 years is approximately **$2,693.12**. 

Thus, the correct answer is **option D: $2,693.12**.

Would you like further details or have any questions?

Here are 5 related questions to further your understanding:
1. What would the interest be if the interest rate was compounded monthly instead of annually?
2. How does the principal amount affect the interest earned over the same period?
3. What happens to the interest if the interest rate is increased to 10%?
4. How would the result change if the time period was extended to 10 years?
5. What is the formula for simple interest, and how does it compare to compound interest?

**Tip:** The more frequently the interest is compounded, the more interest is accumulated, since the interest itself earns interest more frequently.

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?

Calculate the interest earned on $5,000 compounded annually at 9% for 5 years. This example uses the compound interest formula and demonstrates how to compute accumulated interest step by step. Ideal for students in Grades 9-12.

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