9 years ago, Justine won some money in the lottery and put it in a bank account that earns 3% interest compounded quarterly. If Justine currently has 600.00 in the bank account, how much interest has she earned?

Solution

9 ye a rs a g o, J u s t in e 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 3% in t eres t co m p o u n d e d q u a r t er l y . I f J u s t in e c u rre n tl y ha s 600.00 in t h e bank a cco u n t, h o w m u c h in t eres t ha s s h e e a r n e d ?

Interest : 141.51

Solution steps

Translate the problem into an equation:

600 = 458.48937 \dots + I

Solve for

I, 600 = 458.48937 \dots + I : I = 141.51

Interest : 141.51