Assume that today is the end of 2019 and you are considering investing $8,000 starting at the end of 2020 in an investment account

1. Number of periods = 2027 - 2020 = 7

   Present value of growinhg annuity = [Payments / (required rate - growth rate)] * {[1 - (1 + g) / (1 + r)]^n}

   Present value of growing annuity = [8000 / (0.08 - 0.05)] * {[1 - (1 + 0.05) / (1 + 0.08)]^7}

   Present value of growing annuity = [8000 / 0.03] * {1 - 0.82103}

   Present value of growing annuity = 266,666.6667 * 0.17897

   Present value of growing annuity = $47,725
   2 

   Financial Management is concerned with planning, organizing, directing and controlling the financial activities of an organization. It involves procurement of funds and its effective utilization. It is concerned with applying general management principles in finance administering them.

   Importance of financial management

Financial management helps the organization in effective financial planning

Financial management ensures sufficient acquisition of funds

It enables the organization in utilizing and allocating the funds as per requirements

Critical financial decisions are ensured in financial management

Financial management ensures maximization of the profitability and the overall value of the organization.