1. The Marconi familycomprising Mrs. Marconi, aged 40, Mr. Marconi, aged 38, and their three young children relocated to Barcelona in January 2020 when Mrs. Marconi received a job offer from a leading investment banking giant. They rented a three- bedroom condominium in Barcelona for 2.000 per month, which included parking and condominium fees.

   While renting made life easy, the Marconi family began weighing the pros and cons of purchasing a flat, in the same building, that became available in June 2020. In the past three years, the real estate market had softened somewhat, and the cost of the flats were stable. The idea of home ownership as a form of pension investment appealed to the couple. The monthly rents could be used for mortgage payments instead.

   While searching for the right property they found a nice apartment with 200 square meters, very close to Diagonal-Numancia, one of the best locations of the city.

   The apartment was owned and had been promoted by a state-owned construction company and was offering two alternatives:

   Option A: renting the apartment with a perpetual contract, meaning for ever. The Marconi family thought that could be a good solution for them.

   The family was very happy living in that area, and they had the chance to live there forever at an offered price of 1.600 the first month, and the rent price will be growing by a 0.1% monthly.

   At the same time, they were not forced to ask for a loan, which represented a heavy burden off the Marconis.

   Option B: consisted in acquiring the property with a mortgage scheme for 40 years. The total price of the apartment is 800.000. The family can pay an initial down payment of 200.000 and the rest (600k) to be paid in constant monthly payments with an annual interest rate of a 2.4% compounded monthly.

   Mrs. Marconi establishes the maximum amount they can pay monthly as 2.000.

   7) The family is still thinking that the monthly payments theyll have to afford during the next forty years are too much, and they believe they could convince the seller of making payments only once a year, at the end of each year. The interest rate would still be the same 2.4%. How much money will they save with this action?
   7. c) How much has the family saved (if any) by paying it yearly instead of monthly? (10 points)
   8. b) What is the total amount theyll have paid in total after 40 years? (10 points)
   9. What is the amount of the yearly payment to be done? (10 points)
2. 8) In case that the Marconi family pays the pending amount in yearly payments, the owner can only grant them a 2.4% during the first 10 years. There is the possibility that, after the first 10 years the interest rate increases to a 3.0% for the remaining 30 years.
3. How much should the Marconi family pay per year from year 11 onwards if this occurs? (10 points)