Answer:
C: $6691
Step-by-step explanation:
This problem is one in compound interest. The general formula is shown below. The principal, P, is $5000, the annual interest rate, r, is 0.06 (expressed as a decimal fraction), and the number of years, t, is 5 years: A represents the Amount after 5 years:
A = P(1 + r)^t becomes A = ($5000)(1 + 0.06)^5, or
A = (5000)(1.06)^5 = $6691.12 (Answer D)
