1. An investor short sells 100 shares of a stock for $20.00 per share. The initial margin is 50%, and the maintenance margin is 30%. The price of the stock falls to $12.00 per share. What is the margin, and will there be a margin call?
2. Gerry plans to make four annual deposits of $4000 into an account that pays 5.2%. The first deposit will occur in 2017. What size equal annual withdrawals can Gerry make from the account if the first withdrawal occurs in 2023 and the last occurs in 2028?