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Erin earned some money doing odd jobs last summer and put it in a savings account that earns 12% interest compounded quarterly. After 2 years, there is 100.00 in the account. How much did Erin earn doing odd jobs?Round your answer to the nearest cent.

Solution

Solution

Principal : 78.94

Solution steps

Translate the problem into an equation:

100 = P (1 + \frac{0.12}{4})^{4 \cdot 2}

Solve for

P, 100 = P (1 + \frac{0.12}{4})^{4 \cdot 2} : P = 78.94

Principal : 78.94

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