Reagan earned some money doing odd jobs last summer and put it in a savings account that earns 11% interest compounded monthly. After 8 years, there is 200.00 in the account. How much did Reagan earn doing odd jobs?

Solution

Solution

Principal : 83.29

Solution steps

Translate the problem into an equation:

200 = P (1 + \frac{0.11}{12})^{12 \cdot 8}

Solve for

P, 200 = P (1 + \frac{0.11}{12})^{12 \cdot 8} : P = 83.29

Principal : 83.29

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