A = p(1+ r)^n
A = 8000(1 + 0.06%)^10
Please help me find the value of the annuity for the following:
a1= $8000, I=0.06, n=10
$8,000 invested for 10 years at 8% compounded annually$8,000 invested for 10 years at 0.06%
n = 10
Thank you.
2 answers
Annuities imply that there are periodic payments.
Do you want the present value of an annuity of $8000?
I will assume that.
PV = 8000( 1 - 1.06^-10)/.06
= $58,880.07
Do you want the present value of an annuity of $8000?
I will assume that.
PV = 8000( 1 - 1.06^-10)/.06
= $58,880.07