Question

Celine earned some money doing odd jobs last summer and put it in a savings account that earns 6%interest compounded annually after 8 years there is 800.00 in the account how much did Celine earn doing odd jobs

Answer 1

We determine that value replacing in the following function:

$A=P(1+\frac{r}{n})^{nt}$

We replace as follows:

$800=P(1+\frac{0.06}{12})^{(12)(8)}$

Now, we solve for p, that is:

$\Rightarrow P=\frac{800}{(1+\frac{0.06}{12})^{(12)(8)}}\Rightarrow P\approx495.62$

So, Celine earned approximately the following:

$E=800-495.62\Rightarrow E\approx304.38$

She earned approximately $304.38.