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Grade 100 # Question 1 Please first write down in brackets your STUDENT NUMBER, and find the variables: D2 [] UUUUUUU D Assume that you are planning to make deposits in Turkish Liras (TL) to a bank account: amount of D. TL at year 0 and amount of D2 TL at the end of year Y. (Note that the variables Dj. Dzand Y are given according to your student number) Now, you expect to receive money from the bank for a total of 10 years (starting from the year 1): - For the first five years, you want to withdraw A at the end of each year, - For the next five years, you want to withdraw (A + 1000 TL) at the end of each year. a) Construct the cash flow diagram. (15 points) b) Determine the value of Aif the deposits earn 10% interest compounded annually. (20 points) c) How much extra money you receive annually if the interest rate increases to 20% compounded annually? (20 points) d) Determine the value of A if the deposits earn 16% interest compounded semi-annually. (20 points) e) Determine the value of A if the deposits earn 16% interest compounded continuously. (20 points) f) Which option is the best if you compare the results in d and e? (5 points) TOTAL 100 Good luck for the exam!! Grade 100 # Question 1 Please first write down in brackets your STUDENT NUMBER, and find the variables: D2 [] UUUUUUU D Assume that you are planning to make deposits in Turkish Liras (TL) to a bank account: amount of D. TL at year 0 and amount of D2 TL at the end of year Y. (Note that the variables Dj. Dzand Y are given according to your student number) Now, you expect to receive money from the bank for a total of 10 years (starting from the year 1): - For the first five years, you want to withdraw A at the end of each year, - For the next five years, you want to withdraw (A + 1000 TL) at the end of each year. a) Construct the cash flow diagram. (15 points) b) Determine the value of Aif the deposits earn 10% interest compounded annually. (20 points) c) How much extra money you receive annually if the interest rate increases to 20% compounded annually? (20 points) d) Determine the value of A if the deposits earn 16% interest compounded semi-annually. (20 points) e) Determine the value of A if the deposits earn 16% interest compounded continuously. (20 points) f) Which option is the best if you compare the results in d and e? (5 points) TOTAL 100 Good luck for the exam

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