Solution-How much money will you have at the end

How much money will you have at the end

Reference no: EM132501048

Now that she is going to save 100 €/month, you decided to save those 100€ per month in a bank account that offers a 5% interest rate compounded monthly, till the day she retire (that is to say, in 20 years).

Please answer the following question: If Sara decide to deposits at the end of every month (so your first deposit will be in one month from today) in a bank account that offers a 5% interest rate compounded monthly, and the deposits will increase in a 0.2% month after month, and she keep on doing so for the next 20 years:

a) Draw the timeline (at least the first five periods) with its corresponding numeration of periods and cashflows in their corresponding points

b) How much money will you have at the end? Show the workout

c) What would it happen if the growth rate and the interest rate is the same?

Reference no: EM132501048

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How much money will you have at the end

Reference no: EM132501048

Reference no: EM132501048

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