5 years ago, Baldwin won some money in the lottery and put it in a bank account that earns 7% interest compounded annually. If Baldwin currently has 300.00 in the bank account, how much interest has he earned?

Solution

Solution

Interest : 86.1

Solution steps

Translate the problem into an equation:

300 = 213.89585 \dots + I

Solve for

I, 300 = 213.89585 \dots + I : I = 86.1

Interest : 86.1

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