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30 April, 10:27

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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  1. 30 April, 10:36
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    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
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