Algebra

Please help me find the value of the annuity for the following:
a1= $8000, I=0.06, n=10

$8,000 invested for 10 years at 8% compounded annually$8,000 invested for 10 years at 0.06%
n = 10
Thank you.

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  1. A = p(1+ r)^n

    A = 8000(1 + 0.06%)^10

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  2. Annuities imply that there are periodic payments.
    Do you want the present value of an annuity of $8000?

    I will assume that.

    PV = 8000( 1 - 1.06^-10)/.06
    = $58,880.07

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