Question

devin earned some money doing odd jobs last summer and put it in a savings account that earns 2% interest compounded quarterly after 3 years there is 500.00 in the account how much did Devin earn doing odd jobs

Answer 1

Here,

A = 500

r = 2% = 0.02

n = 4

t = 3

Applying the formula to calculate the compound interest, we have,

$\begin{gathered} A=P(1+\frac{r}{n})^{nt} \\ 500=P(1+\frac{0.02}{4})^{12} \\ 500=P(1.062) \\ P=470.95 \end{gathered}$

Devin had earned 470.95 doing odd jobs.