5 years ago, Josie won some money in the lottery and put it in a bank account that earns 13% interest compounded annually. If Josie currently has 500.00 in the bank account, how much interest has she earned?

Solution

Solution

Interest : 228.62

Solution steps

Translate the problem into an equation:

500 = 271.37996 \dots + I

Solve for

I, 500 = 271.37996 \dots + I : I = 228.62

Interest : 228.62

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