Find the value of the annuity.
a=8000
I=0.09
n=20
To find the value of the annuity, you can use the formula for the future value of an ordinary annuity. The formula is:
FV = (PMT * [((1 + r)^n) - 1]) / r
Where:
FV = Future Value of the annuity
PMT = Payment per period
r = Interest rate per period
n = Number of periods
In this case, the given values are:
PMT = 8000
r = 0.09
n = 20
Plugging in these values into the formula, we have:
FV = (8000 * [((1 + 0.09)^20) - 1]) / 0.09
Now we can calculate it to find the value of the annuity.