LouAnn and Ryan, who file jointly and have modified adjusted gross income $($MAGI$)$ of $$117,611,$ redeemed a qualified Series EE U$.$S$.$ Savings Bond in August $2022$ for $$8,420($$$5,500$ principal, $$2,920$ interest$).$

That fall the couple paid college tuition for Jada, their dependent daughter, in the amount of $$8,100.$ Jada had no scholarships or other tax$-$free assistance.

They would like to claim the American Opportunity Tax Credit for Jada; how much of the savings bond interest can they exclude from taxable income?

$$0$

$$1,422$

$$2,809$

$$2,920$