Question

Stan’s savings account has a balance of $1986. After 23 years, what will the amount of interest be at 4% compounded annually?

Answer 1

by compounded you mean added, right?

Answer 2

yes

Answer 3

ok then to find the interest first you need to see what is 4% of $1986 dollars. To do that you multiply .04 by 1986. That would give you $79.44. So, since that's what was added each year for 23 years, you would do 79.44 x 23 = 1827.12. and then 1986 + 1827.12 = 3813.12. That would be the amount on the account after 23 years. =) Let me know if this helped, and if it was right.

$3813.12

Answer 4

Hold on.
I think I read the question wrong. Is it asking for the amount after 23 years? Or the total interest of the original amount after 23 years?

Answer 5

after 23 years

Answer 6

Oh, I think I get it. It says the percentage increses by 4 each year. So, the 1986 is probably totally irrelevant. I That makes it easier. I think then in that case you just need to do 4 x 23 = 92%
Hmmm this one is tricky...
What did you originally think?

Answer 7

my answer choices are a.2908.93 b.2899.93 c.2913.93 d.749.40

Answer 8

Lol, well you should've said that at the beginning! xD Haha, okay, now I'm not entirely sure. But, if I were to take a strong guess I would go with B.
Looking at the questions another way would be just adding four percent the interest to 1986, but that isn't in the options since it would be 2065.44
I'm sorry I don't get the question

Answer 9

lol yea your right i should have put all the info in first place my mistake