Case:

Bart Simpson started to save some money 9 years ago with the objective to buy a new house in Beverly Hills area. He decided to deposit 150 euros per month into a new savings account that yielded 3.50% p.a. compounded quarterly.

In addition, Homer his father, wanted to help him out to raise more money by depositing 6,000 euros a year at the end of every year in his sons savings during 6 years (starting this operation the same year as Bart).

Four years later Bart got a job on Wall Street as a Financial Analyst, so he saw the opportunity to increase his savings even more and decided to deposit 19.5% of his monthly salary during one year. The total amount bart deposits on the account will yield compoundly at the same rate (3.50% p.a) every quarter for 3 years. In average, Bart earned 4,400 euros per month.

Questions

1.Calculate all the quarterly cashflows from the first quarter to the last quarter. (paragraph 1).

2.Calculate all the future values of the 6 year annuity deposit of 6000 euros?

3.Calculate the 3 years quarterly future values of barts savings deposited from his salary?

4.How much money does bart have in the end on his account?