Susan and Jeff each makes deposits of 100 at the end of each year for 40 years. Starting at the end of th 41st year, Susan makes annual withdrawals of X for 15 years and Jeff makes annual withdrawals of Y for 1 years. Both funds have a balance of zero after the last withdrawal. a) Susan's fund (both deposit and withdrawal) earns interest at an annual effective rate of 8% and Jeff's fund (both deposit and withdrawal) earns interest at an annual effective rate of 10%. Calculate Y-X. Solution: Susan: 100S401 Xa151 at 8% X = 25,905.65 8.55947 = 3, 026.55 %3D Jeff: 100S401 =Ya15] at 10% Y = 44,259.26 7.606 = 5815.93 %3D Y-X=2792.38 b) Susan's deposit fund earns interest at an annual effective rate of 8% for the first 10 years and 4% thereafter, Jeff's deposit fund earns interest at an annual effective rate of 10% for the first 10 years and 6% thereafter where both their withdrawals happen at an annual effective interest rate of 5%. Calculate Y-X. (Hint: Recall the AV for varying interest rate)