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Please first write down in brackets your STUDENT NUMBER (important note for students having 10digits student number: e.g. 2200674135 should be taken as 22674135 ),
Please first write down in brackets your STUDENT NUMBER (important note for students having 10digits student number: e.g. 2200674135 should be taken as 22674135 ), and find the variables: Assume that you are planning to make deposits in Turkish Liras (TL) to a bank account: amount of D1 TL at year 0 and amount of D2 TL at the end of year Y1+Y2. (Note that the variables D1,D2, and Y s are given according to your student number) Now, you expect to receive money from the bank for a total of 20 years (starting from the year 1): - For the first ten years, you want to withdraw A at the end of each year, - For the next ten years, you want to withdraw (A+100TL) at the end of each year. a) Construct the cash flow diagram. (15 points) b) Determine the value of A if the deposits earn 20% interest compounded annually. (20 points) c) How much money you lose annually if the interest rate decreases to 15% APR? (20 points) d) Determine the value of A if the deposits earn 18% interest compounded quarterly. ( 20 points) e) Determine the value of A if the deposits earn 16% interest compounded continuously. (20 points) f) Which option is the best if you compare the results in d and e? (5 points)
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