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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

Respuesta :

[tex]FV=P(1+\frac{r}{n})^{nt}[/tex]

Where:

[tex]\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}[/tex]

Therefore:

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

Answer:

$6029.93

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