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The trustees of a college have accepted a gift of $475,000, but are required to deposit it in an account paying 6% per year, compounded
The trustees of a college have accepted a gift of $475,000, but are required to deposit it in an account paying 6% per year, compounded semiannually. They may make equal withdrawals at the end of each six-month period, but the money must last 5 years.
(a) Find the amount of each withdrawal.
(b) Find the amount of each withdrawal if the money must last 6 years.
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