Question

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 interest rate is 10 percent per year? A:$12,418.43 B:$13,660.27 C:$15,026.30

Answer 1

$x$ × 1.1 × 1.1 × 1.1 × 1.1 = 20,000

$x$ × 1.4641 = 20,000

$x= \frac{20,000}{1.4641}$

$x = 13660.27$