being kompounded 25000$ is deposited in an account that pays 5% interest, semi-annually. Equal annual withdrawals are to be made from the account, beginning one year from now and continuing forever. Find the maximum amount of the equal annual withdrawal.

Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
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25000s is deposited in an account that pays 5% interest, being kompounded
semi-annually. Equal annual withdrawals are to be made from the account,
beginning one year from now and continuing forever. Find the maximum
amount of the equal annual withdrawal.
Transcribed Image Text:25000s is deposited in an account that pays 5% interest, being kompounded semi-annually. Equal annual withdrawals are to be made from the account, beginning one year from now and continuing forever. Find the maximum amount of the equal annual withdrawal.
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