For the past five years, you have made semi-annual deposits of $5,000 in a savings plan. The first deposit was exactly five years ago and the last deposit was six months ago. The plan has paid 6 percent per annum compounded quarterly. One year from today, you plan to make the first of 12 semi-annual withdrawals. Each of the first six withdrawals will be equal to one another and each of the seventh through twelfth withdrawals will be equal to one another. Each withdrawal from the first set of six will be half as large as a withdrawal from the second set of six. Starting today, you expect the interest on your plan to be 5% per annum compounded monthly.

Required:

(a)What is your account balance as of today. That is, six months after your last deposit to your savings plan.

(b)The amount you calculated in (a) funds your future withdrawals. How much do you expect your withdrawals to be in the first set of six versus the second set of six?

(c)What is your account balance three years and seven months from today. This balance must fund remaining withdrawals and is, therefore, the PV of remaining payments.