SOLUTION: Bobby needs to save $10,000 for school in the next two years. He found a bank that offers a 10% interest rate compounded annually. What does he need to deposit at the beginning of

Question 768236: Bobby needs to save $10,000 for school in the next two years. He found a bank that offers a 10% interest rate compounded annually. What does he need to deposit at the beginning of the year to have enough money for school?
Answer by stanbon(75887) (Show Source): You can put this solution on YOUR website!
Bobby needs to save $10,000 for school in the next two years. He found a bank that offers a 10% interest rate compounded annually. What does he need to deposit at the beginning of the year to have enough money for school?
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10,000 = P(1+(0.10/1))^(1*2)
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10,000 = P(1.1)^2
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P = $8264.46
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Cheers,
Stan H.
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