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 if the interest rate is 10 percent per year ?

Answer 1

Use the compound interest formula:
\[T=I(1+i)^n\]
Where T is the total amount at the end, I is the initial investment, i is the interest rate and n is the time in years.