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

Can you answer if the beginning age were 17? Just one year to go?

Answer 2

if you choose c, her daughter would get $21036.82 and for b it would be $19124 (both for four years)

Answer 3

Thanks @Jake_Litt

Answer 4

If only we could tell if you learned anything.