Answer:
2.236
Step-by-step explanation:
PV = P(1 - (1 + r)^-n) / r; where P is the periodic withdrawal = $100,000; r = rate = 5% = 0.05; n = number of periods = 20 years.
PV = 100000(1 - (1 + 0.05)^-20) / 0.05 = 100000(1 - 1.05^-20) / 0.05 = 100000(1 - 0.3769) / 0.05 = 100000(0.6231) / 0.05 = 100000(12.4622) = 1,246,221 ≈ $1,250,000
If x = 1 the the answer would be <span>2.01715045524.</span>
See attachment for graph.
Notes: graph each line as if they are "equal".
Then draw the lines as:
dashed for < and >
solid for ≤ and ≥
Next, choose a test point and plug it into both equations. If the result is True for BOTH equations, then shade that section.