Question 7 1 point How much money will you have in 8 years i

Question 7 (1 point) How much money will you have in 8 years if you save $900 per year? Assume you make 8 annual payments at the end of each year and that you can earn 10.5 percent annual interest. DO NOT USE DOLLAR SIGNS OR COMMAS IN YOUR ANSWER. ROUND ANSWER TO THE NEAREST DOLLAR. Your Answer:

Solution

Future value of annuity=Annuity[(1+rate)^time period-1]/rate

=$900[(1.105)^8-1]/0.105

=$900*11.64560881

=10481(Approx).