10 years ago, Billy won some money in the lottery and put it in a bank account that earns 15% interest compounded annually. If Billy currently has 500.00 in the bank account, how much interest has he earned?

Solution

Solution

Interest : 376.41

Solution steps

Translate the problem into an equation:

500 = 123.59235 \dots + I

Solve for

I, 500 = 123.59235 \dots + I : I = 376.41

Interest : 376.41

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