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Shawn earned some money doing odd jobs last summer and put it in a savings account that earns 10% interest compounded monthly. After 4 years, there is 1,000.00 in the account. How much did Shawn earn doing odd jobs?

Solution

Shawn earned some money doing odd jobs last summer and put it in a savings account that earns 10% interest compounded monthly. After 4 years, there is 1, 000.00 in the account. How much did Shawn earn doing odd jobs?

Solution

Principal : 671.43

Solution steps

Translate the problem into an equation:

1000 = P (1 + \frac{0.1}{12})^{12 \cdot 4}

Solve for

P, 1000 = P (1 + \frac{0.1}{12})^{12 \cdot 4} : P = 671.43

Principal : 671.43

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