Brad earned some money doing odd jobs last summer and put it in a savings account that earns 4% interest compounded monthly. After 6 years, there is 400.00 in the account. How much did Brad earn doing odd jobs?

Solution

Solution

Principal : 314.78

Solution steps

Translate the problem into an equation:

400 = P (1 + \frac{0.04}{12})^{12 \cdot 6}

Solve for

P, 400 = P (1 + \frac{0.04}{12})^{12 \cdot 6} : P = 314.78

Principal : 314.78

Popular Examples

Polly is saving up money to buy a car. Polly puts 6,000.00 into an account which earns 5% interest, compounded monthly. How much will she have in the account after 7 years?A coin is tossed five times. Find the probability of getting exactly three heads.Hunter opened a savings account and deposited 3,000.00. The account earns 5% interest, compounded annually. If he wants to use the money to buy a new bicycle in 3 years, how much will he be able to spend on the bike?The sum of a number and 19 is equal to the number divided by −17 28 is twelve less than 4 times a number.Find the number