Final answer:
To have $10,000 in ten years with a 10% interest compounded annually, you need to put approximately $3,854.56 into a bank account.
Step-by-step explanation:
To calculate the amount of money you need to put into a bank account to have $10,000 in ten years with a 10% interest compounded annually, you can use the formula for compound interest. The formula is:
A = P(1 + r/n)^(nt)
Where:
- A is the future value of the investment ($10,000 in this case)
- P is the principal amount
- r is the annual interest rate (10% in this case)
- n is the number of times that interest is compounded per year (1 time in this case)
- t is the number of years (10 years in this case)
Using this formula, we can calculate:
P = A / (1 + r/n)^(nt) = $10,000 / (1 + 0.1/1)^(1*10)
P ≈ $3,854.56