Given:
Bryce has $3,106 in a savings account that earns 4% interest, compounded annually.
so, the initial investment = P = 3,106
The interest rate = r = 4% = 0.04
compounded annually ⇒ n = 1
We will find the interest earned in 5 years, ⇒ t = 5
We will use the following formula to find the interest (I):
substitute with the given data:
Rounding to the nearest cent
So, the answer will be the interest = $672.92