Question
You have made quarterly deposits of $X each in a savings plan. The last was eight months ago. The first deposit was fifteen years and
You have made quarterly deposits of $X each in a savings plan. The last was eight months ago. The first deposit was fifteen years and nine months prior to the last. The plan has paid 4.1% per annum compounded continuously. Beginning today, the savings plan will pay interest at the rate of 4.8% per annum compounded monthly. You plan to make several equal semi-annual withdrawals of $Y each from the account with the first eleven months from today, the last ten years and six months after the first. Your account balance three years and eight months after the first withdrawal is $1,000,000. At the time of the last withdrawal, your account balance is zero.
Required:
(i) Find $X
(ii) Find $Y
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