Step-by-step explanation:
a. The amount of annual savings is:
$68/month x 12 months/year = $816/year
b. To calculate the future value of the annual amount over 8 years, we can use the following formula:
FV = PV x (1 + r)^n
where FV is the future value, PV is the present value (in this case, the annual savings amount), r is the interest rate, and n is the number of years.
Plugging in the values we get:
FV = $816 x (1 + 0.05)^8
FV = $816 x 1.469
FV = $1,198.85
Therefore, the future value of the annual amount over 8 years, assuming an interest rate of 5 percent, is $1,198.85.