document.write( "Question 916739: A trust fund for a ten year old child is being set up by a single payment so that at an age of 21 the child will receive $27,000. find how much the payment is if an interest rate of 6% compounded semi-annually is assumed.
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Algebra.Com's Answer #556244 by lwsshak3(11628)\"\" \"About 
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A trust fund for a ten year old child is being set up by a single payment so that at an age of 21 the child will receive $27,000. find how much the payment is if an interest rate of 6% compounded semi-annually is assumed.
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\n" ); document.write( "Compound Interest Formula: A=P(1+r/n)^nt, P=initial investment, r=interest rate, n=number of compounding periods per year,t=number of years, A=amt after t-years.
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\n" ); document.write( "For given problem:
\n" ); document.write( "P=(to solve)
\n" ); document.write( "r=.06
\n" ); document.write( "n=2
\n" ); document.write( "A=27000
\n" ); document.write( "t=11 yrs
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\n" ); document.write( "27000=P(1+.06/2)^11n
\n" ); document.write( "27000=P(1+.03)^22
\n" ); document.write( "27000=P(1.03)^22
\n" ); document.write( "P=27000/(1.03)^22
\n" ); document.write( "P=14091
\n" ); document.write( "single payment for trust fund=$14,091 \n" ); document.write( "
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