SOLUTION: A 11-year-old child received an inheritance of $6000 per year. This was to be invested and allowed to accumulate until the child reached 21 years of age. The first payment was made

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Question 1131684: A 11-year-old child received an inheritance of $6000 per year. This was to be invested and allowed to accumulate until the child reached 21 years of age. The first payment was made on the child's 11th birthday and the last on the 21st birthday. If the money was invested at 6.1% compounded annually, what did the child receive at age 21? (Round your final answer to two decimal places.)
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Answer by Theo(13342) About Me  (Show Source):
You can put this solution on YOUR website!
first installment when child is 11.
last installment when child is 21.
installments are 6000 each year.
money is invested at 6.1% compounded annually.
what does child receive at 21?

use a financial calculator.

calculator i used is at https://arachnoid.com/finance/

present value = 6000
annual payment of 6000 made at the end of each year.
number of years = 21 - 11 = 10
interest rate per year = 6.1%

solve for future value to get future value = 90,304.04

here's a display of used of that calculator.

present value and payments are negative because they're money going out.
future value is positive because it's money coming in.

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i confirmed using excel.
here's a printout.

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