# Solved Question: You decide to invest $2000 per year for 10 years at an annual interest rate of 8% Get premium Solution to all your Homework Assignments exclusively on writerkingdom. We have CFA/MBA writers to provide customized model answers to your every academic problem ## Description Question: You decide to invest$2000 per year for 10 years at an annual interest rate of 8%. What is the present value of your 10-year investment?

Periodic payment (P) = $2000 Rate per period (r) = 8% Number of periods (n) = 10 years $PV of investment = P[\frac{1 - (1 + r)^{-n}}{r}]$ $PV of investment = 2000[\frac{1 - (1 + .08)^{-10}}{.08}]$ PV of investment =$13,420.16