How much money do you have to put into a bank account that pays 10% interest compounded annually to have $10,000 in ten years?

Future value (FV) = $10,000

Interest rate (r) = 10% = 0.10

Number of years (n) = 10 years

PV = FV (1 + r) - n

PV = $10,000 (1 + 0.10) - 10

PV = $10,000 (1.10) - 10

PV = $10,000 x 0.3855

PV = $3,855

Explanation:

In this case, there is need to calculate the present value. The present value is obtained by discounting the future value at 10% interest rate per annum for 8 years.