Question: Problem 1 (30 points) Suppose that you make 20 equal annual deposits (A) that can provide 10 annual withdrawals. The first withdrawal of $30,000 is
Problem 1 (30 points) Suppose that you make 20 equal annual deposits (A) that can provide 10 annual withdrawals. The first withdrawal of $30,000 is made at the end of year 21 and subsequent withdrawals increase at a rate of 5% per year over the previous year's amount. (use factor notation 1. Draw the cash flow diagram 2. Find A if the interest rate is 6,5% per year
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