Solve the problem. round to the nearest cent. stan’s savings account has a balance of $1986. after 23 years, what will the amount of interest be at 4% compounded annually? a. $2908.93 c. $2913.93 b. $2899.93 d. $794.40

1986*1.04^(23) = 4894.93

4894.93-1986 = 2908.93

Answer is A

a.  $2908.93

Step-by-step explanation:

We have been given that Stan’s savings account has a balance of $1986. The amount of interest be at 4% compounded annually.

To find the final amount after 23 years we will use compound interest formula.

, where,

A = Final amount,

P= Principal amount,

r = Annual interest rate in decimal form,

n = Number of times interest in compounded per year,

t = Time in years.

Let us convert our given rate in decimal form.

Upon substituting our given values in above formula we will get,

To find the amount of interest we will subtract principal amount from final amount.

Therefore, the amount of interest after 23 years will be $2908.93 and option a is the correct choice.