• Submission file format: Word or excel document, with all the answers, clearly identifying all steps, results and including comments when requested

Exercise 1

Your uncle is offering you a deal,

• To pay you at the end of every month, 1,000 EUR, during 15 years with a growing rate of 2% and an interest

  rate of 5% during the whole period.

• Or paying you right now, 20,000 EUR.

  Confirm which option would you choose and the reason. (20 points)