TVM With Inflation #2 2. You plan to make a deposit today so that every six months for the next 20 years you will be able to withdraw a dollar amount equal in purchasing power to that of $2,500 today. What amount must be deposited today if the inflation rate is 2.5 percent per semiannual period given that the stated annual Dank interest rate. r. i 9.1 percent compounded semiannually. The first withdrawal is to be made six months from today and the last withdrawal is to be made at the end of year 20. Hint: Draw a cash flow diagram, entering the first few and last few withdrawals. Also, try your procedure (formula) on a two year problem and check the result with first principles to be sure your answer is correct. Finally, note that in calculating ke, cop=2, and that the periodic growth rate, g, is 2.5 percent.)