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Aisha earned some money doing odd jobs last summer and put it in a savings account that earns 14% interest compounded monthly. After 7 years, there is $300.00 in the account. How much did Aisha ea doing odd jobs? Round your answer to the nearest cent.

User Sheo Sagar
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Aisha earned some money doing odd jobs

Let P be the amount earned doing odd jobs

she saved the money for 7 years

The interest is 14%

Using the formula

A = p(1 + r/n)^nt

Let P = principal

t= time

r = rate

n = compounded period

Since, the money is compounded monthly, then n = 12

A = $300.00

r = 14%

r = 14/100 = 0.14

t = 7

n = 12

substituting the above figures in to the formula

$300 = P( 1 + 0.14/12)^12 x 7

300 = P( 1 + 0.0116)^84

300 = P (1.0116)^84

300 = P(2.635)

300 = 2.635P

Divide both sides by 2.635

300/2.635 = 2.635P/2.635

P = $113.85

Approximately $114

The money she earned doing odd jobs is $114

User Jiwan
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