N Question 1. Suppose you invest an initial amount $x at time t = 0, which is followed by withdrawals of $(2), $(3x), and $x at respectively t = 1, 2, 3 (years). Also, suppose the cycle of withdrawals repeats indefinitely, i.e. $(2.), $(3x), and $x at respectively t = 4, 5, 6 (years) and so forth. We would like the entire cashflow (from t=0 to 0o) to be equivalent to uniform annual withdrawals of $100 starting at t = 1 and continuing forever. What should be the value of the amount invested (i.e. 2) if the effective annual interest rate is 10%. Question 2. Suppose you wish to make 10 withdrawals, one per year, starting two years from now i.e. starting at t = 2 years. The first withdrawal (at t=2) is $1000 and each successive withdrawal will be 5% lower than its previous. The effective annual interest rate is 8%. however one year after making the 10th withdrawal, the effective annual interest rate changes to 12%. Three years after the 10th withdrawal you make a payment of $100 increasing each year by $50 and continuing forever on a yearly basis. What is the equivalent annual worth of all these withdrawals and payments, i.e. find the equivalent uniform annual amount starting / = 1 and extending forever. Note: (P/G..n) = (1) - 1 (1 N Question 1. Suppose you invest an initial amount $x at time t = 0, which is followed by withdrawals of $(2), $(3x), and $x at respectively t = 1, 2, 3 (years). Also, suppose the cycle of withdrawals repeats indefinitely, i.e. $(2.), $(3x), and $x at respectively t = 4, 5, 6 (years) and so forth. We would like the entire cashflow (from t=0 to 0o) to be equivalent to uniform annual withdrawals of $100 starting at t = 1 and continuing forever. What should be the value of the amount invested (i.e. 2) if the effective annual interest rate is 10%. Question 2. Suppose you wish to make 10 withdrawals, one per year, starting two years from now i.e. starting at t = 2 years. The first withdrawal (at t=2) is $1000 and each successive withdrawal will be 5% lower than its previous. The effective annual interest rate is 8%. however one year after making the 10th withdrawal, the effective annual interest rate changes to 12%. Three years after the 10th withdrawal you make a payment of $100 increasing each year by $50 and continuing forever on a yearly basis. What is the equivalent annual worth of all these withdrawals and payments, i.e. find the equivalent uniform annual amount starting / = 1 and extending forever. Note: (P/G..n) = (1) - 1 (1