Question

V. direction: do what is asked. then,solve the riddle by matching the letters to blank lines below. A. mrs. nacy intvests P 10,000 in her savings account.she earns an interest of 3% (or P 300.00) everv month. after vear. she earns P

Answer 1

To have $10,000 in ten years in a bank account with 10% annual compound interest, one would need to initially deposit approximately $3,855.41.

Step-by-step explanation:

To determine how much money needs to be deposited into a bank account that pays 10% interest compounded annually to accumulate $10,000 in ten years, we use the formula for compound interest, which is A = P(1 + r/n)nt, where A is the future value of the investment/loan, including interest, P is the principal investment amount (the initial deposit or loan amount), r is the annual interest rate (decimal), n is the number of times that interest is compounded per year, and t is the number of years the money is invested or borrowed for.

Since the interest is compounded annually, n is 1. We want A to be $10,000, r as 10% or 0.10, and t is 10 years. We then rearrange the formula to solve for P:

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

P = $10,000 / (1 + 0.10/1)1*10

P = $10,000 / (1.10)10

P = $10,000 / 2.59374

P ≈ $3,855.41

Therefore, you would need to deposit approximately $3,855.41 into the bank account