Ted williams made deposits of $500 at the end of each year for eight years. the rate is 8% compounded annually. the value of ted's annuity at the end of eight years is (use the tables in the handbook):

The value of Ted's annuity at the end of eight years is $5318.3138.

Step-by-step explanation:

Given : Ted Williams made deposits of $500 at the end of each year for eight years. The rate is 8% compounded annually.

To find : The value of Ted's annuity at the end of eight years ?

Solution :

The future value of an ordinary annuity is given by,

Where,

C is deposit amount C=$500

n is the number of payments n=8

i is the interest rate i=8%=0.08

Substitute the value in the formula,

Therefore, the value of Ted's annuity at the end of eight years is $5318.3138.

step-by-step explanation:

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