Question

How much will the account have after a certain period with compound interest?

A) $5940
B) $6120
C) $6300
D) $6480

Answer 1

To have $10,000 in ten years with a 10% interest rate compounded annually, you need to put $3,859.44 into the bank account.

Step-by-step explanation:

To find out how much money you need to put into a bank account to have $10,000 in ten years with a 10% interest rate compounded annually, we can use the formula for compound interest:

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

Where:

• A = future value
• P = principal amount
• r = annual interest rate (as a decimal)
• n = number of times interest is compounded per year
• t = number of years

In this case, we have:

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

$10,000 = P(1 + 0.10)^10

$10,000 = P(1.10)^10

$10,000 = 1.10^10 * P

$10,000 = 2.5937 * P

P = $10,000 / 2.5937

P = $3,859.44

Therefore, you need to put $3,859.44 into the bank account to have $10,000 in ten years with a 10% interest rate compounded annually.