Answer:
a. $2908.93
Explanation:
We use the formula:
A = P( 1 + r)^t
P = $1986
r = 4% = 0.04
t = 23 years
Let's solve
A = 1986(1 + 0.04)^23
A = 1986( 1 + 0.04)
A = 1986( 1.04)^23
A = $4894.925
Now we take
$4894.925 - $1986 = $2908.925
$2908.925 round-up = $2908.93
So, the answer is A