Ivan earned some money doing odd jobs last summer and put it in a savings account that earns 7% interest compounded continuously. After 1 year, there is 600.00 in the account. How much did Ivan earn doing odd jobs?

Solution

Solution

Principal : 559.44

Solution steps

Translate the problem into an equation:

600 = P e^{0.07 \cdot 1}

Solve for

P, 600 = P e^{0.07 \cdot 1} : P = 559.44

Principal : 559.44

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