Answered step by step
Verified Expert Solution
Question
1 Approved Answer
please post in excel with formulas expected do vears under the following 15-14. Create a worksheet to simulate the Brady family finances for five years
please post in excel with formulas
expected do vears under the following 15-14. Create a worksheet to simulate the Brady family finances for five years unda assumptions: Their monthly income varies. In any given month the probabilities are 10 they make no money, 25% they make $1,000, 25% they make $2,000, 256 they make $3,000, and 15% they make $4,000. Their expenses generally (85% of the time) are $1,800 per month, but in a given month there is a 10% chance their expenses are $3,000 and a 5% chance their expenses are $5,000. Monthly expenses are independent of monthly income. All funds accumulate in their bank account. Currently they have $3,000 in the account. When the account is positive they make 0.25% per month interest on the funds in the account for the entire month. If their account goes below $0 they have to pay 1.5% per month interest on the debt. Again, this all accumulates in the account. Assume that all income and expenses occur at the end of the month. (a) Your worksheet should have a row for each month. There should be columns at least for: month number, income, expenses, interest, and balance. You can have as many additional cells as you wish. (b) At the top of your worksheet please show the maximum amount in the bank account, u minimum amount in the bank account, the number of months they were in debt, and of the interest for the five years. (c) Create a chart that has the month number along the X axis and dollars along the plots the Brady family bank account over the 5 years. dollars along the Y axis and RANDOM NUMBERS AND SIMULATION | 325 (d) Add a one-dimension Brady family. Your date balance after 60 months ensional data table to simulate 1.000 different five year periods for the ur data table should have five columns of outputs, the final bank account onths, the maximum amount in the bank account, the minimum amount in he number of months they were in debt, and the total of the interest for the Above the data are give the maximum of each value, the average of each mum of each value. Also give the percent of simulations in which the Brady ak account, the number of month the bank acco five year period. value and the minimum family was never in debt Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started