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
Thank you for the opportunity to help you with your question!
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
Content will be erased after question is completed.
Enter the email address associated with your account, and we will email you a link to reset your password.
Forgot your password?