Lamar earned some money doing odd jobs last summer and put it in a savings account that earns 11% interest compounded continuously. After 1 year, there is 100.00 in the account. How much did Lamar earn doing odd jobs?

Solution

Solution

Principal : 89.58

Solution steps

Translate the problem into an equation:

100 = P e^{0.11 \cdot 1}

Solve for

P, 100 = P e^{0.11 \cdot 1} : P = 89.58

Principal : 89.58

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