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You just inherited​ $10,000. While you plan to squander some of it​ away, how much should you deposit in an account earning​ 5% interest per year if​ you'd like to have​ $10,000 in the account in 10​ years?

Answer :

pedrocarratore

Answer:

$6,139.13

Explanation:

Assuming annual compounding, the expression that describes the future value (F) of an investment (P) at an interest rate r for a period of n years is:

[tex]F= P*(1+r)^n[/tex]

If the desired value after 10 years at 5% per year is $10,000, the required investment is given by:

[tex]10,000= P*(1+0.05)^{10}\\P=\frac{10,000}{1.628894627}\\P=\$6,139.13[/tex]

You should deposit $6,139.13 in the account.

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