You would like to have $10,000 in an account after eight years time. If the account earns 2.5% compounded interest yearly, how much would you have to deposit today

You have to deposit $8,207.5 today.

Step-by-step explanation:

Compound interest:

The amount of money in yearly compounded interest, after t years, is given by the following equation:

In which A(0) is the initial deposit and r is the interest rate, as a decimal.

You would like to have $10,000 in an account after eight years time.

This means that when

2.5% compounded interest

This means that

So

How much would you have to deposit today?

We have to find A(0), when . So

You have to deposit $8,207.5 today.

savings account is an account only used for saving money. this acts as an emergency source of funding for an individual. answer a would result in the money in his account to grow as it specifically states that interest is compounded daily at the rate of 2%

step-by-step explanation:

the answer is 8/21

hope this