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bees13 bees13
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6 years ago
  Don made deposits of $500 at the end of each year for eight years. The rate is 8% compounded annually. Using the tables found in the textbook, calculate the value of Don's annuity at the end of eight years.
   
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wrote...
#1
Educator
6 years ago
Hi Bees13

What you'll need:

A=R[(1+i)^n−1]/i

Where:

A=future value amount
R=regular deposit/payment
i=interest rate per compounding period
n=total number of deposits

According your information, we have:

R = $500
i = 0.08
n = 8

A solution similar to this one was done by our website a while ago:



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