Create a simple cash flow model for accumulating savings in Matlab Simulink (Initial parameters: Salary = 3600; Expenses = 3000). Make sure to set the modeling time step time to 1 . Answer the questions below (by implementing appropriate modifications in Simulink model).

1) Assume that the cumulated savings are paid 2.5% interest per year compounded continuously to the savings account (i.e. assume 2.5%/12 interest payments per time step). Round your answer in thousands of euros e.g. 134325 EUR = 134 kEUR

a) What is the amount of savings after 240 months (= 20 years)

b) Assume that you would have to pay 30% capital income tax for your monthly interest rate income (e.g. first month tax would be: 2.5%/12 * 500 EUR * 30% = 0,31 EUR). What would be the amount of savings after taxes (assuming all other things equal)?

c) Add living expenses by 100 EUR (from 3000 to 3100 EUR) in the model and change the interest rate assumption to 4.0% (taxes as in Q1b). Now, by manually increasing/decreasing the simulation time horizon, iterate how many full years (=round up) you would have to work before getting above 300 kEUR?

d) Continue with the model and its parameters from c using 240 months simulation time. Create the following modifications in the model:

i) Add a 2.0%/12 monthly pay increase to your salary.

ii) Add a progressive tax payment that is deducted from your gross salary. Use a block called 1-D Lookup table with following Block parameters:

Breakpoints 1 = [1e3, 3e3, 5e3, 7e3, 1e4, 1e6] (monthly salary)

Table data = [0, .17, .22, .37, .58, .58] (respective tax-%)

What is now: The amount of accumulated savings? (240 months), the amount of total taxes paid over the simulation timeframe? Remember to include both the income tax (salary) and capital income tax (interests).

Show used blocks and explain so the task can be easily replicated in Matlab Simulink.