Question

2. At 6% effective annual interest, approximately how much should be deposited at the start of each year for ten years (a total of 10 deposits) in order to empty the fund by drawing out $200 at the end of each year for ten years (a total of 10 withdrawals)?

(A) $190 (B) $210 (C) $220 (D) $250

3. At 6% effective annual interest, approximately how much will be accumulated in ten years if three payments of $100 are deposited every other year for four years, with the first payment occurring at t = 0?

. (A) $180

. (B) $480

. (C) $510

. (D) $540

Answer 1

2)