Raymond earned some money doing odd jobs last summer and put it in a savings account that earns 13% interest compounded annually. After 7 years, there is 400.00 in the account. How much did Raymond earn doing odd jobs?

Solution

Solution

Principal : 170.02

Solution steps

Translate the problem into an equation:

400 = P (1 + \frac{0.13}{1})^{1 \cdot 7}

Solve for

P, 400 = P (1 + \frac{0.13}{1})^{1 \cdot 7} : P = 170.02

Principal : 170.02

Popular Examples

Kevin is 6 years older than Timothy, but 4 years ago Kevin was twice as old as Timothy, how old is kevin and timothy the difference between a number and six is twenty three Hansen is saving up money to buy a car. Hansen puts 8,000.00 into an account which earns 10% interest, compounded monthly. How much will he have in the account after 2 years?Dale opened a savings account and deposited 2,000.00. The account earns 3% interest, compounded monthly. If he wants to use the money to buy a new bicycle in 2 years, how much will he be able to spend on the bike?seven more than the quotient of a number and 2 is 10