Periodic Deposit

Rate

Time


$8000
at the end of each year 
4.5%
compounded annually 
10
years 
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]
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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