To find the future value (FV) of an annuity, you need to use the "compound interest" formula.
The compound interest formula (using the variable names you included above), is FV = a(1 + i)^n.
Note: this is assuming interest is compounding only once per year.
All that's left is to plug your numbers into the formula, and calculate!
Let's do it !
FV = the unknown value
a = the original principal amount (the amount you started with).
n = the number of years.
i = the interest rate (0.010 is 1% per year). So ...
FV = a(1 + i)^n
FV = 8000(1 + 0.010)^25 Simplify following PEMDAS! (P)arentheses first!
FV = 8000(1.010)^25 (E)xponents next!
FV = 8000(1.28243199502) Now (M)ultiply.
FV = 10259.46 or $10,259.46.
The future value of your original $8000 annuity, earning 1% interest per year, compounded once annually for 25 years, is $10,259.46!
Good luck, Charles!