Answer:
Anna will need to deposit [tex]\$9,050.25[/tex]
Step-by-step explanation:
we know that
The compound interest formula is equal to
[tex]A=P(1+\frac{r}{n})^{nt}[/tex]
where
A is the Final Investment Value
P is the Principal amount of money to be invested
r is the rate of interest in decimal
t is Number of Time Periods
n is the number of times interest is compounded per year
in this problem we have
[tex]t=2\ years\\A=\$10,000\\ r=0.05\\n=12[/tex]
substitute in the formula above and solve for P
[tex]10,000=P(1+\frac{0.05}{12})^{12*2}[/tex]
[tex]10,000=P(1.0042)^{24}[/tex]
[tex]P=10,000/(1.0042)^{24}[/tex]
[tex]P=\$9,050.25[/tex]
