# Algebra

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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