Heather earned some money doing odd jobs last summer and put it in a savings account that earns 3% interest compounded annually. After 4 years, there is 700.00 in the account. How much did Heather earn doing odd jobs?

Solution

Solution

Principal : 621.94

Solution steps

Translate the problem into an equation:

700 = P (1 + \frac{0.03}{1})^{1 \cdot 4}

Solve for

P, 700 = P (1 + \frac{0.03}{1})^{1 \cdot 4} : P = 621.94

Principal : 621.94

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