Question: Problem H02-01 (Points: 1/4). Topic: Equivalence. Suppose that you have a savings plan covering the next ten years, according to which you put aside $600
Problem H02-01 (Points: 1/4). Topic: Equivalence. Suppose that you have a savings plan covering the next ten years, according to which you put aside $600 to- day, $500 at the end of every other year for the next five years, and $400 at the end of each year for the re- maining five years. As part of this plan, you expect to withdraw $300 at the end of every year for the first 3 years, and $350 at the end of every other year thereafter. (a) [Points: 0.2/4] Tabulate your cash flows using the following template: Savings Withdrawals Cash Flows End of Year 0 1 9 10 (b) [Points: 0.2/4]Draw your cash flow diagram. ) [Points: 0.4/4] Tabulate the progression savings account throughout the years using the following tem- plate: Year Amount at the Beginning + Interest for = Amount at the End of the Interest Period the period of the Interest Period 0 1 9 10 (d) [Points: 0.1/4] What is the final balance at the end of the 10th year for a yearly interest rate of 1.5%? (e) [Points: 0.1/4] How much profit you made in those 10 years? Problem H02-01 (Points: 1/4). Topic: Equivalence. Suppose that you have a savings plan covering the next ten years, according to which you put aside $600 to- day, $500 at the end of every other year for the next five years, and $400 at the end of each year for the re- maining five years. As part of this plan, you expect to withdraw $300 at the end of every year for the first 3 years, and $350 at the end of every other year thereafter. (a) [Points: 0.2/4] Tabulate your cash flows using the following template: Savings Withdrawals Cash Flows End of Year 0 1 9 10 (b) [Points: 0.2/4]Draw your cash flow diagram. ) [Points: 0.4/4] Tabulate the progression savings account throughout the years using the following tem- plate: Year Amount at the Beginning + Interest for = Amount at the End of the Interest Period the period of the Interest Period 0 1 9 10 (d) [Points: 0.1/4] What is the final balance at the end of the 10th year for a yearly interest rate of 1.5%? (e) [Points: 0.1/4] How much profit you made in those 10 years
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