Respuesta :
Present value of annuity A= P*[ (1 - (1 + R) ^ (- N)] R
where
P= Payment = $8000
R = Rate of interest per period-4/2% N= no. of period = 10×2=20
S_{n}
A= 8000[ (1 - (1 + 2gamma_{0}) ^ - 20] 270
= (8000[1 - (1 + 2/100) ^ - 20])/(2/100)
130 811.466 $
In funding, an annuity is a chain of payments made at equal intervals.[1] Examples of annuities are everyday deposits to a financial savings account, month-to-month domestic mortgage payments, month-to-month insurance bills and pension payments. Annuities may be categorized with the aid of the frequency of payment dates. The bills (deposits) may be made weekly, month-to-month, quarterly, every year, or at another normal c language of time. Annuities can be calculated by mathematical features referred to as "annuity functions". An annuity which gives for bills for the remainder of someone's lifetime is a lifestyles annuity.
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