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RSB [31]
3 years ago
5

Jayden earned some money doing odd jobs last summer and put it in a savings account that earns 12% interest compounded monthly.

After 5 years, there is $400.00 in the account. How much did Jayden earn doing odd jobs?
Mathematics
1 answer:
aivan3 [116]3 years ago
8 0

Answer:

$220.18

Step-by-step explanation:

The amount A(n) accrued for P dollars saved at r% annual interest for a period of n years compounded k times is derived using the formula:

A(n)=P \left(1+\dfrac{r}{k}\right)^{nk}

In Jayden's case:

  • A(n)=$400
  • r=12%=0.12
  • n=5 years
  • k=12 Months

We want to determine the amount Jayden put in the savings account.

400=P \left(1+\dfrac{0.12}{12}\right)^{12*5}\\400=P \left(1+0.01}\right)^{60}\\400=P \left(1.01}\right)^{60}\\P=\dfrac{400}{\left(1.01}\right)^{60}}\\

P=\$220.18

Jayden earned $220.18 from doing odd jobs.

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Ronisha invests $5000 in an account that earns 2.3% annual simple interest. After 3 years, Ronisha invests the interest earned i
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Very complicated problem, but thank goodness I have too much time and am a nerd.

Basically model 1st account as so.
Fv=pv(1+I)^N
Fv future value
Pv present value
I interest
N number years
So first equation is interest earned after 3 years
Y=5000(1+0.023)^3
Y=5353 (rounded up)
So we know that the interest earned is 5353-5000 which is 353.

Now Ronisha (clearly the name of a future investment genius) invests these 353$ in a new account.
Now remember we’re not solving for FV we’re cause we’re given that: 55.2$
However this is the interest earned not the future value. So if interest earned is fv - pv and we know pv
Fv - 353 = 55.2
Fv = 408.2$
So now we reuse the formula
408.2 = 353(1+0.032)^x
Now just solve for x:
First divide both sides by 353
1.156 = 1.032^x
Remember the log rule that states x=b^y is same as y=logb(x)
So using the same logic:
X= log1.032(1.156)
Use some kind of calculator for that where you can adjust log base. But you basically get:
X= 4.602
So Ronisha has to basically invest 5 years or 4.6 years which is 4 years and 7 months.

Omg nevermind, wait it’s simple interest….
Sorry here’s the simple solution. My bad, but I worked so hard on the top part I don’t want to delete it.
I=prt
Interest = principal * rate * time
I= 5000(0.023)(3)=345
Then just do the same but plug 55.2 for I
55.2 = 345(0.032)t
Now solve for t
55.2 = 11.04t
t= 5

As you can see, similar logic where ultimately it takes 5 years. But this “genius” Ronisha should’ve just done compounding interest (my first calculation) and gotten it done in 4.6 years. Almost 5 months faster.
6 0
2 years ago
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