Continuous annuity with withdrawal rate

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Reference no: EM13978059

A continuous annuity with withdrawal rate N = $1,800/year and interest rate r = 2% is funded by an initial deposit P0.

(a) When will the annuity run out of funds if P0=$89,000? The annuity runs out after approximately__ years. Answer to the nearest whole year.

(b) Which initial deposit P0 yields a constant balance? P0 = $

Reference no: EM13978059

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