Problem: Company makes a deposit of $600,000 on 1/1/01 and a deposit of $400,000 on 1/1/03 into an account that pays interst at 6% compounded semiannually. On 1/1/04, Company transfers the entire balance in the account to a new account that pays interest at 8% compounded quarterly. Company then deposits %500,000 into the account on 1/1/05. On 1/1/07, Company transfers the entire balance in the account to a new account that pays interest at 4% compounded annually. On this same day, Company makes the first of 4 equal annual withdrawals designed to deplete the account
Compute the:
1) amount transfered into the new account on 1/1/04
2) amount of interest earned by Company from 1/1/02 through 1/1/06
3) amount transfered on 1/1/07 to the new account
4) amount of the equal annual withdrawal
5) amount of interest earned during the year of 2007
6) balance in the account on 1/1/08, immediately after makin gthe 2nd equal annual withdrawal
7) amount of decrease in the balance of the account from 1/1/08 to 1/1/09