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You have to pay $12,500 a year in school fees at the end of each of the next six years. If the interest rate is 8%, how much do you need to set aside today to cover these bills? You have invested $70,476 at 8%. After paying the above school fees, how much would remain at the end of the six years?

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khuranashilpa76

At the end of the six years, the amount of 55474.55597 will remain, if the interest rate is 8%.

An interest rate is the quantity of interest due according to the period, as a share of the amount lent, deposited, or borrowed. the overall hobby on an amount lent or borrowed depends on the principal sum, the hobby fee, the compounding frequency, and the period of time over which it's far lent, deposited, or borrowed.

The interest rate is the amount a lender charges a borrower and is a percentage of the predominant quantity loaned. The interest rate on a mortgage is typically mentioned on an annual foundation known as the once-a-year percentage fee (APR).

present value of annuity = C × [ [tex]\frac{1- (1 + i)^{-n}}{i}[/tex]]

                                        =   12000 × [ [tex]\frac{1-(1 + 8)^{-6} }{8}[/tex]]

                                         = 55474.55597

Learn more about interest rates here:-https://brainly.com/question/25793394

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