Question

Austen earned some money doing odd jobs last summer and put it in a savings account that earns 6%interest compounded quarterly after 8 years there is 100.00 in the account how much did Austen earn doing odd jobs

Answer 1

`FV=P(1+(r)/(n))^(nt)`

Where:

`\begin{gathered} P=\text{ Principal} \\ FV=\text{ Future value}=10000 \\ r=\text{ Interest rate}=0.06 \\ n=\text{ Compounding periods per year}=4 \\ t=\text{time}=8 \end{gathered}`

Therefore:

`\begin{gathered} 10000=P(1+(0.06)/(4))^(32) \\ 10000=P(1.61032432) \\ \text{Solve for P:} \\ P=(10000)/(1.61032432) \\ P=6029.93 \end{gathered}`

Answer:

$6029.93