Question

Luther earned some money doing odd jobs last summer and put it in a savings account that earns 3% interest compounded quarterly after 2 years there is 800.00 in the account how much did Luther earn doing odd jobs

Answer 1

The function we have to use in this case is

`m(t)=m_o\cdot(1+(0.03)/(4))^(4t)`

where mo is the initial amount of money. After 2 teats we get that

`\begin{gathered} m_0\cdot(1+(0.03)/(4))^8=800 \\ m_0\cdot1.06=800 \\ m_0=(800)/(1.06)\approx754.71 \end{gathered}`

SO he earned 755 approximately