Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

2. Today, the last business day of August, you received your first salary of $ 1000. You have been promised a 3% increase per month

2. Today, the last business day of August, you received your first salary of $ 1000. You have been promised a 3% increase per month for the next 20 years. You have decided to save 30% of your salary every month by depositing $ 100 in a term deposit at 2% per month in Bank X, and the rest in Bank Y at 2.5% per month. On the other hand, you will continue to receive $ 80 per month, at the end of each month, for a research aid that you intend to keep forever. You deposit this check in full at Bank Y. It asks: a) Set up the dynamic system in discrete time that allows you to see the evolution of your salary, the balance in Bank X and the balance in Bank Y over time. Explain any additional assumptions you make (7 marks) b) Solve the system (you can use the computer to do it, any program) (6 points)

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Personal Finance

Authors: Megan Noel, Dan French

2nd Edition

1465246479, 9781465246479

More Books

Students also viewed these Finance questions

Question

How often a company needs to back up its data?

Answered: 1 week ago