A continuous annuity with withdrawal rate N = $500 $ 500/year and interest rate r = 5% is funded by an initial deposit P0 P0 . (a) When will the annuity run out of funds if P0=$7,000 P 0=$7,000? The annuity runs out after approximately
A continuous annuity with withdrawal rate N = $500 $ 500/year and interest rate r = 5% is funded by an initial deposit P0 P0 . (a) When will the annuity run out of funds if P0=$7,000 P 0=$7,000? The annuity runs out after approximately
College Algebra
7th Edition
ISBN:9781305115545
Author:James Stewart, Lothar Redlin, Saleem Watson
Publisher:James Stewart, Lothar Redlin, Saleem Watson
Chapter8: Sequences And Series
Section8.4: Mathematics Of Finance
Problem 2E
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Question
A continuous annuity with withdrawal rate N = $500
$
500/year and interest rate r = 5% is funded by an initial deposit P0
P0
.
(a) When will the annuity run out of funds if P0=$7,000
P
0=$7,000?
The annuity runs out after approximately
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