Mr. blochirt is creating a college investment fund for his daughter. he will put in $1,000 per year for the next 5 years starting one year from now and expects to earn a 6% annual rate of return. how much money will his daughter have when she starts college

This is the concept of time value of money, to get the amount of money Blochirt's daughter will have for college we proceed as follows;

A=p (1+r/100) ^n

p=principle

r=rate

n=time

therefore using the above formula, the amount of money after 5 years will be:

A=1000 (1+6/100) ^5

A=1000 (1.06) ^5

A=1,338.23

The answer is $1,338.20