You have received 500,000€ as an unexpected heritage. Banks are aware of that, and they want to attract you as new customer/investor. You have to explain some financial concepts to your couple and take also some decisions about what to do with that money. Answer the following questions according to the following data given by the banks: 

1-Explain, the difference between a constant and a growing annuity to your couple?

2-How much should you invest every year in a financial product that offers a 6% compounded yearly, during the next ten years, in order to finally have an amount  of 500,000€ more? Please make sure you clearly indicate all the steps?

3-If you invest 12,000 €/year, during the next 10 years,  in a bank account that offers a 6% compounded yearly, how much money you'll after those 10 years?

4-And if you invest 1,000 €/month, during the next 10 years,  in a bank account that offers a 6% compounded monthly, how much money you'll after those 10 years?

5-You are seriously thinking on investing the received amount in a financial product that will offer a 4% interest rate, and take those interests generated once per year to go on holidays with your couple. You'll keep that money there indefinitely, and interests will also be generated indefinitely. How much you'll get as annual interests?

6- . You have decided (together with your couple, of course) to buy a flat that costs 800,000€. So, you'll still need 300,000€ more. If you go to the bank and borrow that amount, and you agree to pay that loan back in constant monthly payments during the next 10 years, what is the monthly amount you'll have to pay if the interest rate associated to that loan is a 3% compounded monthly?

 And how much you'll have paid back in total?

7-Based on the previous exercise, if instead of paying that loan back in constant monthly payments to pay in back in constant yearly payments during the next 10 years, what will be the yearly amount you'll have to pay back to the bank if the interest rate associated to that loan is now a 3% compounded yearly?(15p) b. And how much you'll have paid back in total?

c. In case you pay the loan back on a yearly basis, do you finally pay more or less than if you do it on a monthly basis? Why?