A continuous annuity with withdrawal rate N = $1,200/year and interest rate r = 2% is funded by an initial deposit Po. (a) When will the annuity run out of funds if Po = $55,000? The annuity runs out after approximately Answer to the nearest whole year. (b) Which initial deposit Po yields a constant balance? Po = $ years. A
A continuous annuity with withdrawal rate N = $1,200/year and interest rate r = 2% is funded by an initial deposit Po. (a) When will the annuity run out of funds if Po = $55,000? The annuity runs out after approximately Answer to the nearest whole year. (b) Which initial deposit Po yields a constant balance? Po = $ years. A
Chapter8: Sequences, Series,and Probability
Section8.3: Geometric Sequences And Series
Problem 8ECP: An investor deposits $70 on the first day of each month in an account that pays 2 interest,...
Question
Transcribed Image Text:A continuous annuity with withdrawal rate N = $1,200/year and interest
rate r = 2% is funded by an initial deposit Po.
(a) When will the annuity run out of funds if Po = $55,000?
The annuity runs out after approximately
Answer to the nearest whole
year.
(b) Which initial deposit Po yields a constant balance? Po = $
years.
A
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