Miranda wants to give her 14-years old daughter $20,000 when she turns 18. how much does she need to put in the bank now if the interest rate is 10 percent per year?

Miranda has to put $13,661 in the bank.

Step-by-step explanation:

Miranda wants to give her 14-years old daughter $20,000 when she turns 18

Miranda has 4 years to make $20,000

Rate of interest = 10% per year

Let initial deposit be $x

Final amount (A) = $20,000

Time (t) = 4 years

Rate (r) = 0.10

Formula:

Substitute the values into formula

Now we solve for x

Hence, Miranda has to put $13,661 in the bank.

300pi

step-by-step explanation: