Answer:
Miranda has to put $13,661 in the bank.
Step-by-step explanation:
Miranda wants to give her 14-years old daughter $20,000 when she turns 18
Miranda has 4 years to make $20,000
Rate of interest = 10% per year
Let initial deposit be $x
Final amount (A) = $20,000
Time (t) = 4 years
Rate (r) = 0.10
Formula:
Substitute the values into formula
Now we solve for x
Hence, Miranda has to put $13,661 in the bank.