Maggie earned some money doing odd jobs last summer and put it in a savings account that earns 13% interest compounded monthly. After 9 years, there is 700.00 in the account. How much did Maggie earn doing odd jobs?

Solution

Solution

Principal : 218.63

Solution steps

Translate the problem into an equation:

700 = P (1 + \frac{0.13}{12})^{12 \cdot 9}

Solve for

P, 700 = P (1 + \frac{0.13}{12})^{12 \cdot 9} : P = 218.63

Principal : 218.63

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