You are considering an investment opportunity that offers an APR of 8%, compounded quarterly. You wish to invest an equal amount quarterly for ten...

You are considering an investment opportunity that offers an APR of 8%, compounded quarterly. You wish

to invest an equal amount quarterly for ten years. Beginning the first quarter of year eleven you plan on

making equal quarterly withdrawals.

a. What is the maximum equal quarterly withdrawal you (and your heirs) could make in perpetuity

(forever)? Express the answer as a function of your equal quarterly investments.

b. If you planned quarterly withdrawals equal to 150% of your quarterly deposits until the investment

account balance was zero, for how many quarters would you be able to make such withdrawals?