a) Betty and Bob deposit $1,000 at the end of March, June, September, and December for 5 years. At the end of 5 years the account balance is $29, 778.08. Using Newtons Method with a table of several rows find the per annum rate of return compounded quarterly. Your answer should be correct to at least 3 places after the decimal point. ___________

b) Algebraically find the equivalent effective rate of return that is the equivalent rate of return per annum compounded annually. _________

c) During the next 10 years the account earns the effective rate of return in part b. Betty and Bob withdraw (or they are paid) an equal amount of money at the end of each year for 10 years. Also, at the end of the 10^th year, in addition to the regular withdrawal, they withdraw (or are paid) a special $10,000 amount. Algebraically find what the regular yearly payments are. Your final answer should be correct to at least 3 places after the decimal point. __________

Decimal accuracy is important. You should be working within the problem to at least 4 places after the decimal point before you round off at the end.