10 years ago, Anna won some money in the lottery and put it in a bank account that earns 14% interest compounded monthly. If Anna currently has 200.00 in the bank account, how much interest has she earned

Solution

10 ye a rs a g o, A nna 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 nna c u rre n tl y ha s 200.00 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 : 150.28

Solution steps

Translate the problem into an equation:

200 = 49.72068 \dots + I

Solve for

I, 200 = 49.72068 \dots + I : I = 150.28

Interest : 150.28