8. 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.

Question

Mathematics

Noel Alvarado

2 June, 17:36

8. 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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Answers (1)

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Arthur Mcbride · Answer 1

Step-by-step explanation:

P = $ 500; r = 8%; n = 8

A = P * (1+r/100) ^n

A = 500 * (1 + 8/100) ⁸

= 500 * (1 + 0.08) ⁸ = 500 * 1.08⁸

=500*1.85

= $ 925.45