50.1K

Verified Solution

Link Copied!

Suppose that you want to open a saving account in a private bank and deposits some equal amounts per month.

BY USING YOUR STUDENT ID, please state 1-initial amount, 2-deposits per month and 3-number of interest periods and 4- interest rate per month with respect to following rules:

1. Initial amount is the last 4-digits of your student ID (You are free to define the currency)
2. Deposits per month is the second 3-digits of your student ID (Assume the same currency with initial amount)
3. Number of interest periods must be a two-digit number. It is stated by using the number in thousands and the number in the last digit of your student ID.
4. Monthly interest rate is the last digit of your student ID (If your student ID ends with zero, please assume arbitrarily any positive value between 1-10)

For example, suppose that my student ID is 200204101

Then

1. My initial amount is the last 4-digits of my ID (100204101): 4101 TL
2. Deposits per month is the second 3-digits of my ID (100204001):204 TL
3. Number of interest period is a 2-digit number.
   • I need to use 3 (which is the number in thousands i.e. 100204101)
   • and 1 (which is the last digit i.e. 100204101)

Thus I arbitrarily state my Number of interest period as 41 months (14 is also ok!)

4. Interest rate is the last digit of my ID (200204101): =1% per month

Please state your WITHDRAWAL Plan (i.e. the timings and amounts of your withdrawals)

Develop your Cash Flow Table, Cash Flow Diagram and Payment Plan BY USING EXCEL

Answer & Explanation Solved by verified expert

See Answer