8 years ago, Chad won some money in the lottery and put it in a bank account that earns 2% interest compounded annually. If Chad currently has 100.00 in the bank account, how much interest has he earned?

Solution

Solution

Interest : 14.65

Solution steps

Translate the problem into an equation:

100 = 85.34903 \dots + I

Solve for

I, 100 = 85.34903 \dots + I : I = 14.65

Interest : 14.65

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