Raymond earned some money doing odd jobs last summer and put it in a savings account that earns 3% interest compounded annually. After 5 years, there is 100.00 in the account. How much did Raymond earn doing odd jobs?

Solution

Solution

Principal : 86.26

Solution steps

Translate the problem into an equation:

100 = P (1 + \frac{0.03}{1})^{1 \cdot 5}

Solve for

P, 100 = P (1 + \frac{0.03}{1})^{1 \cdot 5} : P = 86.26

Principal : 86.26

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