A continuous annuity of $12,000 per year is to be funded by steady withdrawals from a savings

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A continuous annuity of $12,000 per year is to be funded by steady withdrawals from a savings account that earns 6% interest compounded continuously.

(a) What is the smallest initial amount in the account that will fund such an annuity forever?

(b) What initial amount will fund such an annuity for exactly 20 years (at which time the savings account balance will be zero)?

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Calculus And Its Applications

ISBN: 9780134437774

14th Edition

Authors: Larry Goldstein, David Lay, David Schneider, Nakhle Asmar

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Question Posted: Mar 31, 2023 03:52 AM

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A continuous annuity of $12,000 per year is to be funded by steady withdrawals from a savings

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Calculus And Its Applications

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