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Find the minimum initial deposit P0 that will allow an annuity to pay out $6000/year indefinitely if it earns interest at a rate of 5%.

  1. Find the minimum initial deposit P0 that will allow an annuity to pay out $6000/year indefinitely if it earns interest at a rate of 5%. 
  2. An initial deposit of 100,000 euros are placed in an annuity with a French bank. What is the minimum interest rate the annuity must earn to allow withdrawals at a rate of 8000 euros/year to continue indefinitely? 

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