annuties and sinking found

Question

A 10-year-old child received an inheritance of $5000 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 10th birthday and the last on the 21st birthday. If the money was invested at 5.7% compounded annually, what did the child receive at age 21? (Round your final answer to two decimal places.)

Answer 1

yu put up 5,000$/yeer, 5.7%, kompound 1 per yeer

problem: interest formula assume yu put down $ on 1Jan & get interest at end

av kompound period=1 yeer heer.

So time span DONT inklude the paement at aej=21

paements at aej=10, 11,...20=11 yeers

kompounded gro tu 77,886.98$

then add in 5000$ for aej=21...82,886.98$