What amount is required to fund a perpetuity

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Question 1 - A $10,000 investment will be allowed to grow at 4.5% compounded semiannually until it can support semiannual withdrawals of $1000 for 20 years. Rounded to the nearest month, how long before the first withdrawal must the investment be allowed to grow?

Question 2 - What amount is required to fund a perpetuity that pays $10,000 at the beginning of each quarter? The funds can be invested to earn 5% compounded quarterly.

Reference no: EM132923672

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