You decide to open an individual retirement account (IRA) at your local bank that pays 9 percent/year/month. For the next 30 years, starting 1 month from today, you will deposit $200 per month into the account. On the day of the last deposit, you will retire. As a benefit to retirees, the bank increases the interest rate on this account to 12 percent/

year/month on the day they retire. It remains at this rate from that time on. You do not make any withdrawals for the first 2 years after you retire. Two years after you retire, you will begin making monthly withdrawals from your IRA.

You plan to make equal monthly withdrawals from the account.

a. What is the balance in the account immediately after the last deposit?

b. What is the balance in the account 1 month prior to making the first withdrawal?

c. What monthly amount can be withdrawn if you want the withdrawals to last for 15 years?

d. What monthly amount can be withdrawn if you want the withdrawals to last forever?