What is the present value of the following annuity 1445 ever

What is the present value of the following annuity?

$1,445 every year at the end of the year for the next 8 years, discounted back to the present at 13.11 percent per year, compounded annually?

Solution

Present value of inflows=cash inflow*Present value of discounting factor(rate%,time period)

=1445/1.1311+1445/1.1311^2+...........+1445/1.1311^8

=1445[1/1.1311+1/1.1311^2+.............+1/1.1311^8]

=1445*4.78075312

which is equal to

=$6908.19(Approx)