Sumara Kato's savings account has a balance of $1663. After 19 years, how much interest

will she have earned if her rate is 5.5% compounded annually?

(1) $3159.70 (2) $2936.27 (3) $2942.27

(4) $2925.27

Answer: $2936.27

Step-by-step explanation:

Present value = $1663

Rate = 5.5%

Time (n) = 19years

Future value = PV (1+r) ^n

= 1663 (1+5.5%) ^19

= 1663 (1.055) ^19

=1663 * 2.766

=4599.86

Interest = Future value - Present value

= $4599 - $1663

= 2936