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Popular Word Problems >

9 years ago, Daniel won some money in the lottery and put it in a bank account that earns 14% interest compounded monthly. If Daniel currently has 700.00 in the bank account, how much interest has he earned?

Solution

9 ye a rs a g o, D ani e l 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 D ani e l c u rre n tl y ha s 700.00 in t h e bank a cco u n t, h o w m u c h in t eres t ha s h e e a r n e d ?

Solution

Interest : 499.99

Solution steps

Translate the problem into an equation:

700 = 200.01125 \dots + I

Solve for

I, 700 = 200.01125 \dots + I : I = 499.99

Interest : 499.99

Popular Examples

You deposit 500 in an account that pays 2.5% annual interest. Find the balance after 2 years when the interest is compounded daily. Round your answer to the nearest cent.if a man has 70 and gives 60 to a friend how much will be left find the simple interest on 500 at 8% for 2 years Yusuf is going to invest in an account paying an interest rate of 6.5% compounded quarterly. How much would Yusuf need to invest, to the nearest ten dollars, for the value of the account to reach 1,330 in 6 years?Josue is going to invest in an account paying an interest rate of 3.1% compounded quarterly. How much would Josue need to invest, to the nearest hundred dollars, for the value of the account to reach 1,170 in 13 years?