2 years ago, Steve won some money in the lottery and put it in a bank account that earns 10% interest compounded annually. If Steve currently has 1,000.00 in the bank account, how much interest has he earned?

Solution

2 years ago, Steve won some money in the lottery and put it in a bank account that earns 10% interest compounded annually. If Steve currently has 1, 000.00 in the bank account, how much interest has he earned?

Solution

Interest : 173.55

Solution steps

Translate the problem into an equation:

1000 = 826.44628 \dots + I

Solve for

I, 1000 = 826.44628 \dots + I : I = 173.55

Interest : 173.55

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