Question

Terrance earned some money doing odd jobs last summer and put it in a savings account that earns 2%interest compounded monthly after 2 years there is $300.00 in the account how much did Terrance earn doing odd jobs

Answer 1

we get the following equation

$m=m_0(1+\frac{0.02}{12})^{12\cdot t}$

where t is the amount of years. And m0 is the initial value. So we get

$\begin{gathered} 300=m_0(\frac{601}{600})^{24}=1.040776\cdot m_0\rightarrow \\ m_0=\frac{300}{1.040776}=288.24 \end{gathered}$

so Terrance did $288.24 doing odd jobs