Question

Celine earned some money doing odd jobs last summer and put it in a savings account that earns 6%interest compounded annually after 8 years there is 800.00 in the account how much did Celine earn doing odd jobs

Answer 1

We determine that value replacing in the following function:

`A=P(1+(r)/(n))^(nt)`

We replace as follows:

`800=P(1+(0.06)/(12))^((12)(8))`

Now, we solve for p, that is:

`\Rightarrow P=(800)/((1+(0.06)/(12))^((12)(8)))\Rightarrow P\approx495.62`

So, Celine earned approximately the following:

`E=800-495.62\Rightarrow E\approx304.38`

She earned approximately $304.38.