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A continuous annuity with withdrawal rate N = $1,100/year and interest rate r = 4% is funded by an initial deposit Po. (a) When
A continuous annuity with withdrawal rate N = $1,100/year and interest rate r = 4% is funded by an initial deposit Po. (a) When will the annuity run out of funds if Po = = $24,500? The annuity runs out after approximately Answer to the nearest whole year. (b) Which initial deposit Po yields a constant balance? Po = $ years.
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Investments
Authors: Zvi Bodie, Alex Kane, Alan J. Marcus
9th Edition
73530700, 978-0073530703
