Question: time t = 0 , Paul deposits P into a fund crediting interest at an effective annual interest rate of 8 % . At the

time t =0, Paul deposits P into a fund crediting interest at an effective annual interest rate of 8%.At the end of each year in years 6 through 20, Paul withdraws an amount sufficient to purchase an annuity-due of 100 per month for 10 years at a nominal interest rate of 12% compounded monthly.Immediately after the withdrawal at the end of year 20, the fund value is zero.

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