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?

$12,418.43
$13,660.27
$15,026.30

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?


$12,418.43
$13,660.27
$15,026.30

anonymous · Answer

compound or simple interest?

anonymous · Answer

i dont know it just gives me this fomula
p*(1+i)^t

anonymous · Answer

Hey, Wolf?  Do you know if i=10 or .1?

anonymous · Answer

p*(1+10)^4=20,000, right?

wolf1728 · Answer

The formula you will need is: Principal = Total ÷ (1 + Rate)^ Years Prin = 20,000 / (1.10)^4 Prin = 20,000 / 1.4641 Principal = 13,660.27 The formula is on this page: http://1728.org/compint2.htm and a calculator to check your work is on this page: http://1728.org/compint.htm

wolf1728 · Answer

Hi raven it is .1

anonymous · Answer

Oh, okay. Thank you for the help. :) Have a great night.

wolf1728 · Answer

Glad to have helped out.
Yes, I'll get going for now.