Question

Terrance earned some money doing odd jobs last summer and put it in a savings account that earns 2%interest compounded monthly after 2 years there is $300.00 in the account how much did Terrance earn doing odd jobs

Answer 1

we get the following equation

`m=m_0(1+(0.02)/(12))^(12\cdot t)`

where t is the amount of years. And m0 is the initial value. So we get

`\begin{gathered} 300=m_0((601)/(600))^(24)=1.040776\cdot m_0\rightarrow \\ m_0=(300)/(1.040776)=288.24 \end{gathered}`

so Terrance did $288.24 doing odd jobs