Question

ou have and a bank is offering interest on deposits. if you deposit the money in the bank, how much will you have in one year?

Answer 1

To have $10,000 in ten years with a 10% interest rate compounded annually, you need to deposit approximately $3,734.10 in the bank account.

Step-by-step explanation:

To calculate the amount of money you need to deposit in a bank account to have $10,000 in ten years with a 10% interest rate compounded annually, you can use the formula for compound interest:

A = P(1 + r/n)^(nt)

Where:

• A is the final amount
• P is the principal (initial deposit)
• r is the interest rate (in decimal form)
• n is the number of times interest is compounded per year
• t is the number of years

In this case, with an interest rate of 10% and compounding annually, the formula becomes:

$10,000 = P(1 + 0.1/1)^(1*10)

Simplifying the equation:

$10,000 = P(1.1)^10

Now we can solve for P:

P = $10,000 / (1.1)^10

Using a calculator, you can find that P is approximately $3,734.10. Therefore, you need to deposit approximately $3,734.10 in the bank account to have $10,000 in ten years.