The trustees of a college have accepted a gift of $$$$175000,$ but are required to deposit it in an account paying $10\%$ per$$ year, compounded semiannually. They may make equal withdrawals at the end of each$$ six$-$month period, but the money must last $7$ years.

$($a$)$ Find the amount of each withdrawal.

$($b$)$ Find the amount of each withdrawal if the money must last $9$ years.

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Part $1$

$($a$)$ The amount of each withdrawal is $$$

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The trustees of a college have accepted a gift of $175,000, but are required to deposit it in an account paying 10% per year, compounded semiannually. They may make equal withdrawals at the end of each six-month period, but the money must last 7 years. (a) Find the amount of each withdrawal. (b) Find the amount of each withdrawal if the money must last 9 years. (a) The amount of each withdrawal is $ (Round your answer to the nearest cent.) The trustees of a college have accepted a gift of $175,000, but are required to deposit it in an account paying 10% per year, compounded semiannually. They may make equal withdrawals at the end of each six-month period, but the money must last 7 years. (a) Find the amount of each withdrawal. (b) Find the amount of each withdrawal if the money must last 9 years. (a) The amount of each withdrawal is $ (Round your answer to the nearest cent.)

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The problem described deals with an annuity due to fixed and regular withdrawals from an account tha... View the full answer