SOLUTION: Miranda wants to give her 14 year old daughter $20000 when she turns 18. How much does she need to put in the bank now if the interest rate is 10 percent per year?

Question 1141905: Miranda wants to give her 14 year old daughter $20000 when she turns 18. How much does she need to put in the bank now if the interest rate is 10 percent per year?
Answer by ankor@dixie-net.com(22740) (Show Source): You can put this solution on YOUR website!
Miranda wants to give her 14 year old daughter $20000 when she turns 18.
How much does she need to put in the bank now if the interest rate is 10 percent per year?
:
Assuming the interest rate is compounded annually, Ao = initial amt
Ao*(1.1)^4 = 20000
1.4641*Ao = 20000
Ao = 20000/1.4641
Ao = $13,660.27
RELATED QUESTIONS
Your friend Bill has a daughter who just turned 8 years old. She is planning on starting (answered by Theo)

1.Marina had an accident with her car and the repair bill came to $800. She didn�t have... (answered by ikleyn)

Susana started investing $2000 each December 31st since she was 25 years old. Susana is... (answered by Theo)

Cecelia Thomas is a sales executive at a Baltimore firm. She is 25 years old and plans to (answered by ikleyn)

She is 25 years old and plans to invest $4,600 every year in an IRA account, beginning at (answered by Boreal)

Natasha recently had a baby girl and wants to place her baby shower money into an account (answered by htmentor)

A father is planning a savings program to put his daughter through college. His daughter (answered by Theo)

Cecelia Thomas is a sales executive at a Baltimore firm. She is 25 years old and plans to (answered by Boreal,MathTherapy)

I need this answered for my exam plz hurry if you can Jennifer wants to take a trip to (answered by Theo,ankor@dixie-net.com)