6 years ago, Aiden won some money in the lottery and put it in a bank account that earns 14% interest compounded monthly. If Aiden currently has 100.00 in the bank account, how much money does he have

Soluzione

6 ye a rs a g o, A i d e n w o n so m e m o n ey in t h e l o tt ery an d p u t i t in a bank a cco u n t t ha t e a r n s 14% in t eres t co m p o u n d e d m o n t h l y . I f A i d e n c u rre n tl y ha s 100.00 in t h e bank a cco u n t, h o w m u c h m o n ey d oes h e ha v e

Principal : 43.38

Fasi della soluzione

Translate the problem into an equation:

100 = P (1 + \frac{0.14}{12})^{12 \cdot 6}

Risolvi per

P, 100 = P (1 + \frac{0.14}{12})^{12 \cdot 6} : P = 43.38

Principal : 43.38