To answer this item, I assume that it is compounded yearly such that the amount of interest (I) from the given present worth (P), interest rate (i) and the number of years (n) is calculated through the equation,
I = P x (1 + i)^n - P
Substituting,
I = ($55) x (1 + 0.04)^5 - $55
I = 11.91
The answer is nearest to the first choice, $11.
