Compund Interest

posted by .

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?

  • Compund Interest -

    x(1.10)^2 = 10000
    x = 10000/1.1^2 = 8264.46

Respond to this Question

First Name
School Subject
Your Answer

Similar Questions

  1. compounded interest

    A bank offers a rate of 5.3% compounded semi-annually on its four year GICs(Guaranteed Investment Certificates). What monthly and annually compounded rates should it quote in order to have the same effective interest rate at all three …
  2. Math

    Michelle needs to save $7,000 for school for the next two years. She found a bank that offers a 9% interest rate compounded annually. What does she need to deposit at the beginning of the year to have enough money for school?
  3. math

    You receive $12,000 and looking for a bank to deposit the funds. Bank A offers an account with an annual interest rate of 3% compounded semiannually. Bank B offers an account with 2.75% annual interest rate compounded continuously. …
  4. math

    You receive $12,000 and looking for a bank to deposit the funds. Bank A offers an account with an annual interest rate of 3% compounded semiannually. Bank B offers an account with 2.75% annual interest rate compounded continuously. …
  5. Finance

    You receive $12,000 and looking for a bank to deposit the funds. Bank A offers an account with an annual interest rate of 3% compounded semiannually. Bank B offers an account with 2.75% annual interest rate compounded continuously. …
  6. Finance

    You receive $12,000 and looking for a bank to deposit the funds. Bank A offers an account with an annual interest rate of 3% compounded semiannually. Bank B offers an account with 2.75% annual interest rate compounded continuously. …
  7. Compound interest

    Hello My teacher skipped over this and I have no clue how to do this or the equations. Help would be wonderful thank you If 6000 dollars is invested in a bank account at an interest rate of 10 per cent per year, find the amount in …
  8. Applied Business Math

    Michelle needs to save $7,000 for school in the next two years. She found a bank that offers a 9% interest rate compounded annually. What does she need to deposit at the beginning of the year to have enough money for school?
  9. Finance - Annuities

    Natasha plans to deposit $4,000 per year in her account for each of the next 4 years. Thereafter, she expects to deposit $1,500 per year for another 4 years. All deposits are made at year-end. Interest rates are expected to be 8 percent …
  10. Math Help Please!

    A bank offers two interest account plans. Plan A gives you 6% interest compounded annually. Plan B gives you 13% annual simple interest. You plan to invest 2,000 for the next 4 years. Which account earns you the most interest (in dollars) …

More Similar Questions