Present Value: P=?
Amount per Payment at the end of each year: A=$1,000
Number of years: n=8
Interest rate: i=6%=6/100→i=0.06
Compounded Annually
P=A{[1-(1+i)^(-n)]/i}
P=$1,000{[1-(1+0.06)^(-8)]/0.06}
P=$1,000{[1-1.06^(-8)]/0.06}
P=$1,000[(1-0.627412371)/0.06]
P=$1,000(0.372587629/0.06)
P=$1,000(6.209793811)
P=$6,209.793810
P=$6,209.79
Answer: Present Value is $6,209.79
