Answer: On each, first identify as a Future Value annuity or Present Value annuity. Then answer the question. 1) How much money must you deposit now at 6% interest compounded quarterly in order to be able to withdraw $3,000 at the end of each quarter year for two years?
Using continuous compounding, we have: 90000=65452 x e^.091t 1.3750534743017784024934303000672=e^.091t ln 1.3750534743017784024934303000672=ln e^.091t=.091t ln e=0.091t t=3.5 years
