3. Consider an annuity in which $250,000 is invested and $50,000 is withdrawn at the end...

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3. Consider an annuity in which $250,000 is invested and $50,000 is withdrawn at the end of each year. Suppose the interest rate is 5% during the first year and 6% during the second year. What is the balance after the second year? Find the interest after the first year ANS Find the current balance after year 1 ANS Find the interest earned in the second year ANS Find the balance after the second year ANS 4.Rework Ex3 where the interest rate is 6% during the first year and 5% during the second year. Is the balance after the second year greater than, less than, or equal to the answer in Ex 3? (show calculation here) ANS Work out year 1 first. Find the current balance for the year 2. Work out year 2. Use the formulas F=P+I and I=B*i*n And reduce the current balance at the end of the year. 3. Consider an annuity in which $250,000 is invested and $50,000 is withdrawn at the end of each year. Suppose the interest rate is 5% during the first year and 6% during the second year. What is the balance after the second year? Find the interest after the first year ANS Find the current balance after year 1 ANS Find the interest earned in the second year ANS Find the balance after the second year ANS 4.Rework Ex3 where the interest rate is 6% during the first year and 5% during the second year. Is the balance after the second year greater than, less than, or equal to the answer in Ex 3? (show calculation here) ANS Work out year 1 first. Find the current balance for the year 2. Work out year 2. Use the formulas F=P+I and I=B*i*n And reduce the current balance at the end of the year.

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3 First Year Interest after the first year 250000 5 12500 Current balance afte... View the full answer