Vijay inherited some money from his grandfather and put it in a bank account that earns 5% interest compounded monthly. After 8 years, Vijay had 500.00 in the bank account. How much interest did he earn?

Solution

Solution

Interest : 164.56

Solution steps

Translate the problem into an equation:

500 = 335.43866 \dots + I

Solve for

I, 500 = 335.43866 \dots + I : I = 164.56

Interest : 164.56

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