Financial Math & annuity

Mathematics
Tutor: None Selected Time limit: 1 Day

What sum deposited today at 5% compounded annually for 8 years will provide the same amount as $1000 deposited at the end of each year for 8 years at 6% compounded annually?

Aug 22nd, 2015

Thank you for the opportunity to help you with your question!

P(1+5/100)^8=1000(1+6/100)^8

P(1.05)^8=1000(1.06)^8

P=1000(1.06)^8/1.05^8

P=1078.78.

P=$1078.78

Please let me know if you need any clarification. I'm always happy to answer your questions.
Aug 22nd, 2015

If you need any clarification please am readily available and willing to assist you understand it, thanks once more.

Aug 22nd, 2015

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