# What is the values of the following annuities if interest is compounded annually

Anonymous
account_balance_wallet \$5

### Question Description

What is the value of the following annuities if the interest rate is compounded annually. what is the total amount of interest earned. R=\$1000  i=0.08  n=25

DrMath
School: UCLA

In order to find the value of the annuities we just need to use the following expression and we enter R=\$1000  i=0.08  n=25.

PV = R( 1 - (1+i)^-n )/i = (1000)(1 - (1+0.08)^-25 )/0.08 = (1000)(1 -1.08^-25)/0.08 = (1000)(1-0.146017905)/0.08

PV = (1000)(0.853982095)/0.08 = 853.982095/0.08 = 10674.7761875

PV = \$10674.78

flag Report DMCA
Review

Anonymous
Tutor went the extra mile to help me with this essay. Citations were a bit shaky but I appreciated how well he handled APA styles and how ok he was to change them even though I didnt specify. Got a B+ which is believable and acceptable.

Brown University

1271 Tutors

California Institute of Technology

2131 Tutors

Carnegie Mellon University

982 Tutors

Columbia University

1256 Tutors

Dartmouth University

2113 Tutors

Emory University

2279 Tutors

Harvard University

599 Tutors

Massachusetts Institute of Technology

2319 Tutors

New York University

1645 Tutors

Notre Dam University

1911 Tutors

Oklahoma University

2122 Tutors

Pennsylvania State University

932 Tutors

Princeton University

1211 Tutors

Stanford University

983 Tutors

University of California

1282 Tutors

Oxford University

123 Tutors

Yale University

2325 Tutors