The amount a person would have to deposit today to be able to take out $800 a year for 8 years from an account earning 8 percent.
Added by Paige S.
Step 1
The formula for the present value of an annuity is: PV = PMT * [(1 - (1 + r)^-n) / r] where: - PV is the present value - PMT is the annual payment ($800 in this case) Show more…
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