What is the value of these equal annual withdrawal

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Reference no: EM131562588

1. End of year deposits of $1, 500 are made to a retirement account paying 10%. The first deposit was made at the end of 1961 and the last deposit was made at the end of 1990. Equal annual withdrawals will be made commencing 5 years after the last deposit. What is the value of these equal annual withdrawal if money is still worth 10% and a total of 10 withdrawals are planned?

2. A municipal (tax-free) bond pays a nominal 6% with semi-annual interest payments. The bond is purchased for $9, 200and will pay its holder $10,000 at the end of 8 years.

Reference no: EM131562588

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