Question

Antonio earned some Money doing odd jobs last summer and put it in a savings account that earns 5% interest compounded quarterly after 4 years there is 1,000.00 in the account how much did Antonio earn doing odd jobs

Answer 1

r = 5% = 0.05

t = 4 years

n = 4 (quarterly)

A = 1000

P = ?

1000 = P (1.2199) ==> P = 1000/1.2199 = 819.74

Answer:

$819.74

$1000\text{ = P(1 + }\frac{0.05}{4})^{4(4)}=P(1+0.0125)^{16}=P(1.0125)^{16}\text{ = P(1.2199)}$

$P\text{ = }\frac{1000}{1.2199}\text{ = 819.74}$