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A) Use the appropriate formula to find the value of the annuity.B) Find the interest.Periodic DepositRateTime​$8000at the end of each year4.5%compounded annually10years A) The value of the annuity is $ ?​​(Do not round until the final answer. Then round to the nearest dollar as​ needed.) B) The interest is $ ?​(Use the answer from part​ (a) to find this answer. Round to the nearest dollar as​ needed.)

Question
 
A) Use the appropriate formula to find the value of the annuity.
B) Find the interest.
Periodic Deposit
Rate
Time
​$8000
at the end of each year
4.5%
compounded annually
10
years
 
A) The value of the annuity is $ ?
​​(Do not round until the final answer. Then round to the nearest dollar as​ needed.)
 
B) The interest is $ ?
​(Use the answer from part​ (a) to find this answer. Round to the nearest dollar as​ needed.)
check_circleAnswer
Step 1

Part (a)

If an annuity A is paid at the end of period over N periods and bears a discount (interest) rate R per period then the (future) value of annuity is given by = A / R x [(1 + R)N - 1]

Step 2

Part (b)

Periodic deposit, A = $ 8,000 at the end of each year

Period = year

Number of periods, N = 10

Interest rate = discount rate = R = 10% per annum compounded an...

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