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Year 12 Maths Advanced Series and Finance

Investing Money With Regular Installments

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Question 1
31056

From his son's first birthday, a father makes a series of annual payments of $1000 to a financial institution given an interest of 7% pa. He continues to make these payments until his son's 21st birthday, when the last payment is made. He then withdraws the whole amount and gives it to his son. How much does the son receive, to the nearest dollar?

\(\$44,865. \text{ (nearest dollar)}\)

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