023 at

11:00 am

1. A person plans to make equal annual deposits into a retirement account for 25

years in order and then make 20 equal annual withdrawals of TShs.25,000,000

reducing the balance in the amount to zero. Assume the account offers a

nominal annual rate of 6.5% compounded annually.

(a) How much must be deposited annually to accumulate sufficient funds to

provide for these payments?

(b) How much total interest is earned during thi​