Miranda wants to give her 14-year-old daughter $20,000 when she turns 18. How much does she need to put in the bank now if the i

Question

Grace [21]

3 years ago

13

Miranda wants to give her 14-year-old daughter $20,000 when she turns 18. How much does she need to put in the bank now if the i

nterest rate is 10 percent per year?

Mathematics

1 answer:

Eddi Din [679] · Answer 1 · 2022-04-20T18:30:23+03:00

Eddi Din [679]3 years ago

3 0

20,000 = P ( 1 + 0.1 )^4
20,000 = P * 1.1^4
20,000 = P * 1.461
P = 20,000 : 1.461 ≈ $13,689.25
Answer: Miranda needs to put now in the bank $13,689.25