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Vijay earned some money doing odd jobs last summer and put it in a savings account that earns 6% interest compounded continuously. After 1 year, there is $400.00 in the account. How much did Vijay earn doing odd jobs? Round your answer to the nearest cent.

Respuesta :

The interest is 6%, compounded continuously.

After 1 year there is $400.

The continuous compound formula is

[tex]A=P\times e^{i\times t}[/tex]

Where P is the principal, A is the final amount, i is the interest and t is the time in years.

Replacing all the given information, we have.

[tex]\begin{gathered} 400=P\times e^{0.06\times1} \\ P=\frac{400}{e^{0.06}} \\ P\approx376.71 \end{gathered}[/tex]

Hence, Vijay earned $376.71 doing odd jobs.